Cutting the Budget: A Long Week For City Staff

City Manager Paul Navazio’s to-do list was pretty dense this past week.

That’s thanks to a four-part motion made by Mayor Joe Krovoza and approved unanimously by the city council at last Tuesday’s meeting. The results of that motion could have a major effect on the city’s financial future, especially since we’re just 10 days away from the June 30 budget deadline. 

"This seems like a prime opportunity to talk about some really frank discussions with the employee groups," Councilman Dan Wolk said of Krovoza's motion.

In the motion, the mayor asked the city to come back with the following four pieces of information by June 21: 

• Restore transportation funding to $1 million, which is $800,000 more than the current budget.
• Add a sinking fund to the budget in anticipation of the Public Employees Retirement System AAR (Assumed Rate of Return). That represents $500,000.
• Assume all Tier 1 and Tier 2 cuts with the exception of those moved by the council at the May 31 meeting (those had to do with public safety). 
• Direct staff to come to the council with $2.5 million in personnel savings (by the first quarter of the coming fiscal year). 

That final item represents about an eight to 10 percent reduction, which is roughly equivalent to 30 city jobs. Because employees have the right to negotiate their salaries, it is not a viable option to reduce wages in this budget. Layoffs, however, are possible.

"I just want citizens and employees to know how limited our options are," Krovoza said. "Whether we cut salary or positions, we are contributing to the downward spiral of the economy. We know that." 

Although reductions in salary do not appear to be possible in this budget, they are a realistic option in coming years, which will definitely require similarly difficult cuts. One public commenter proposed  a 10 percent across-the-board cut, which the council acknowledged during their discussion. 

Watch city staff present their findings at Tuesday's meeting, which begins at 6:30 p.m. at .