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Serious steps needed to balance town budget |
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Friday, 12 December 2008 |
By Catherine Billey
Mammoth Times Staff Writer
In a brief presentation to the town council at the Dec. 3 council meeting, about the $1 million budgetary shortfall facing the Town of Mammoth Lakes, town manager Rob Clark said “We’re not ready to act on it this evening, but will bring proper documentation to act on it at the next meeting.”
The town is facing a potential shortfall of about $1 million in fee revenue this fiscal year because of the continuing construction slowdown, according to Clark’s staff report.
Calling it a very serious issue that cannot be solved by small operational cost reductions, he said that all efforts have been made to avoid staffing reductions and there aren’t many places to cut further.
By Dec. 5, Clark submitted to the mayor and town council that a tentative agreement had been reached with recognized employee groups on a package of changes that will result in a $1 million reduction in spending in the second half of the fiscal year.
Although the details will not be announced until the tentative agreements have been memorialized by the associations and the town, the package does include elimination of some positions, redirection of costs from the general fund to other sources, and concessions from the employees.
At the council meeting on Dec. 3, Mayor Wendy Sugimura expressed concern about the rumors flying around the community in advance of the council meeting. “We’re not actually releasing any information at this point,” she stated.
But she noted that council is indeed facing some tough choices. “We will have to make some tough choices and be very clear about what our priorities are and how this organization is going to run.”
That will be up for discussion on Dec. 17.
Johnnie Gates, president of the General Employees Association, thanked the council for considering a proposal regarding cuts to their contract. Council had asked them to look at where they could save some money by reopening their contracts. The GEA can choose to forego some of their benefits and reduce the amount of money that town has to pay into salary and benefits in order to help balance the budget. Gates encouraged the council to examine and process all facts prior to making any decision.
“Lastly I would also state that we at the GEA are hopeful and firmly believe that we can reach a mutual agreement to solve the budget issues.”
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Last Updated ( Thursday, 18 December 2008 )
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