Hubbard council considering cuts in spending, personnel

By John w. Goodwin jr.

Council is still considering the proposed budget.

HUBBARD — City council gave first reading to a proposed budget for 2009 that calls for cuts in spending and personnel.

The city is covered by a volunteer fire department, and the proposed cuts in personnel do not include the police department. A letter from the office of Mayor Arthur Magee detailed the city’s budgetary needs for the year.

The letter informed council the city would be looking at an income tax reduction of about 8 percent based on collections for January and February. The letter also said the city would receive $12,000 less from the state for sales tax revenue.

The city is operating on a quarterly budget based on 2008 revenue. The city must have a full-year budget in place by March 31.

According to the letter, several layoffs will be necessary in order for the city to balance the budget for 2009.

Suggestions include laying off a city custodian, one street department employee, a worker in the wastewater treatment plant and elimination of school crossing guards. Those cuts would be made immediately upon adoption of the new budget.

“These drastic measures, while unfortunate, are necessary in order for the city to continue operating in a solvent fashion,” Magee said in the letter. “As the city continues to expend reserve cash flows, the investment earnings also continue to decline. It is of grave concern that the city will be unable to meet its sewer bond payment in November. Accordingly it is of great importance that the rate issues are addressed immediately.”

Auditor Michael Villano said at Monday’s council session the elimination of the crossing guards will save the city about $13,000. Each full-time position eliminated in the other departments, he said, will mean a savings of about $50,000.

Villano said the general fund, even after the cost-cutting measures, will still spend about $70,000 more than the city is expected to bring in this year.

“I forewarned council in November that it is going to be a dismal year,” Villano said. “It’s not just here in the city, it’s everywhere. Everyday it’s something different.”

Councilwoman Lisha Baumiller said the city should look to make cuts in areas that do not affect services to residents.

“We can generate savings someplace else,” she said.

City administration is attempting to implement cost-cutting measures in other areas. Service Director Lanier Epperson told council that overtime in most departments had been eliminated except for essential emergency services.

Councilwoman Bonnie Viele announced that park and recreation’s summer programs, due to funding constraints, would be shortened this year and a part-time supervisory position would not be filled.

The proposed budget will go through two additional readings before being approved by council.

In other business, council passed legislation mandating a four- sergeant rule in the police department. The department had been operating with five sergeants, which council said was against the established policy of four sergeants.

Officers opposed the rule because it was done without any input from the chief or any other officers, said Officer Lou Carsone. The change would take the department from four patrolling sergeants to three patrolling sergeants, Carsone added. Sgt. Chris Moffitt will now again be a patrolman.

jgoodwin@vindy.com