Faced with a 9 percent decrease so far in its 2009-2010 fiscal year budget, Sedona city officials are scrambling to find ways to save funds.
City Manager Tim Ernster said the city is down $426,000 from where it should be at this time of the year and doesn’t know if the trend will continue, but added he has to prepare like it will.
He plans to meet with the department heads of the city very soon to discuss citywide reductions. The reductions — at this time — do not include personnel.
In January, city staff will meet with council to discuss additional cuts, and some of them could be dramatic.
He mentioned unpaid furloughs and offering retirement incentives to longtime employees as options.
“We are looking at four days in the second half of the year,” he said, mentioning City Hall would only be open four days a week.
Assistant City Manager Alison Zelms said the employees the city could offer incentives to are veteran workers old enough to retire.
“We are encouraging people to retire,” she said.
Ernster said if seasoned employees take the offers, the city will either not replace them if their jobs are not crucial or replace them with lower-salaried workers.
He added the police department and wastewater treatment plant would still have to be staffed around the clock.
The city manager also discussed the possibility of cutting or reducing some recreational programs.
What is alarming is the downfall of $426,000 is for only one-third of the year, and he thinks the downturn will continue for another year.
“We have to move now because with each passing day departments are spending money,” he said. “What we are looking for is the bottom.”
Zelms said tourists’ buying habits have changed, and while they are still purchasing items, they are not spending as much.
She also said motels and other lodging establishments have lowered prices, and
this, too, has hurt city revenues. The city receives 3 percent in sales tax from lodging.
The city has also just announced it will not hold its annual holiday party for employees and volunteers due to budget constraints. Not having the party will save the city $9,000.
“Our holiday party is the one time in the year that we can honor all the volunteers and staff that have worked so hard to serve the city,” Mayor Rob Adams said. “I regret that our budget challenges have forced us to cut this expenditure, but it is the right thing to do considering the circumstances. I wish everyone a blessed and joyous holiday and thank them for their understanding.”
Ernster said the city is looking at more cost-effective ways to recognize its volunteers and show appreciation for their hard work.
While the study is yet to be completed, the city may increase sewer rates for the first time in 12 years, as well as revise its funding plan for the Wastewater Treatment Plant.
The plan could generate $2.5 million in 10 years, and it would take about 60 days to raise rates.
“We hope to have the new rates in place in late spring,” Ernster said.
Michael Maresh can be reached at 282-7795, ext. 125, or e-mail mmaresh@larsonnewspapers.com
