City Manager Bruce Moore will propose to the City Board of Directors tonight a budget that cuts around $604,000 from special project allocations to make up for a $587,000 shortfall in pension turnback funds.
This is part of some $2 million in budget shifts to account for revene shortfalls. Fleet expenses also will be cut by more than $200,000.
Here's the proposal before the City Board tonight. It also includes a $1.2 million reallocation of administrative costs relative to the Street Fund. We haven't quite been able to translate this into English just yet.
But Leslie Peacock is on hand and will update.
The city board unanimously approved the ordinance, written in astoundingly confusing language to the layman, that will help the city make up $3 million shortfall in the 2010 budget by cutting special projects and taking more money from the the street and fleet funds.
The city needed nearly $2 million after last week's city board decision not to use $1.3 million in fire insurance proceeds to balance the budget. Since then, the city discovered it would come up another $587,000 short thanks to reduced state turnback for police and firefighter pensions.
The ordinance cuts $604,674 from special projects allocations, transfers $1.2 million to the general fund from the Street Fund and increases the Fleet transfer to the general fund of $229,661.
So why all the hullabaloo last week about possible employee layoffs to meet budget demands? Was it because the police and fire unions were voting on whether to defer, for the second time, the 4 percent raise the city had promised?
No, says Bruce Moore. The layoffs were "on the table until noon today," he said, and the street fund transfer was always under consideration. He said the city negotiations with police were conducted at a time expected to be use the insurance money, from the fire at the Adult Leisure Center on Twelfth Street, to bridge the budget gap.
The street fund transfer comes from its reserves, not its operating budget, so potholes will continue to be filled and so forth, Moore said. About $1 million remains in its reserve, which is used to for major capital expenditures rather than short-term financing, he said.