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Hubbard city officials consider reductions in staff and services
The budget will be a topic of discussion at a council meeting Monday.
HUBBARD — Reductions in revenue here have some city officials looking at ways to cut costs — including a possible staff reduction.
City Auditor Michael Villano said the city, much like other area communities, has seen a reduction in revenue because of layoffs and other losses in resident income.
Property taxes, he said, also have been down because of higher numbers of foreclosures.
“We are certainly not doing as good as we have in the past,” Villano said. “This last year our cash flow has dropped like a rock. We cannot keep operating as before. The cash flow to do that just will not be there.”
Council has not approved a budget for 2009, but it does have legislation addressing the budget before it now. The issue will likely be a topic of discussion during council’s regular meeting Monday.
Villano said council is hoping to develop a budget spending only about 98 percent of the revenue generated in 2009. He said the remaining 2 percent could be set aside for future city concerns.
The anticipated revenue for the city in 2009 is about $15 million.
Villano said the city is currently in contract negotiations with safety forces. He said, looking at city finances, staff reductions may be hard to avoid.
“We are likely going to face a reduction in staff. That is looking less like a possibility and more like a reality,” the auditor added.
Mayor Arthur Magee said he does not see where a reduction in staff would be possible in a city that has fewer than 50 city workers.
“When you look at what we have done, we have managed our finances well. We probably have less employees per capita than most cities around the area,” Magee added.
City residents, the mayor said, will likely see reductions in some services. City employees, he said, will be the last cut to be made.
“We are going to make this work somehow, but everyone has to work with us. Will we continue to pick up leaves for six weeks? Probably not. Those things are in jeopardy,” he said. “Our people will be the last to go. We have got to do everything possible to keep our people working. They deserve it.”
Magee said the city may have to look at some increases going forward. He said water and sewer rates here have not been raised in 10 years. An increase in those services, he said, may be a serious consideration for council and the administration.
jgoodwin@vindy.com