Tuesday, July 28, 2009

Budget update

The council met all day on Saturday to address Claremont's budget problems. For the most part, the council went along with the City Manager's recommendations on how to shore up the deficit. At the end of the day, the council approved about $2.5 million in cuts.

The most drastic moves involved city staff and their working hours. Over the next 2 weeks, department heads will be looking at their staff in order to shave off 11 percent of their operating budgets. That means eliminating positions and laying off workers.

Those who keep their jobs are looking at a 5 percent pay cut while working 38 hours a week. City hall and perhaps other city buildings will be closed on Fridays, beginning in September or October.

The council also approved a "Golden Handshake" retirement package but it's only applicable to 6 current employees. The package offers incentives to employees nearing retirement age to walk away from their jobs early. If they accept, the positions will remain empty, saving more money in the future.

City services were cut. Fees on things like sports fields usage and parking tickets will likely go up. And the city will be looking at more ways to generate revenue.

A commonly expressed concern at the meeting was that the budget problems are not over. The state could come back to hit local cities and/or Claremont's tax earnings could keep dwindling. A scary thought considering how deep the latest round of cuts were.

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