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City manager outlines budget shortfall and asks departments to propose cuts
Summary
The city manager said reserves are strong but sales-tax growth has lagged long-term targets, creating a roughly $7–9 million gap; he asked police and fire to propose 1.4% cuts and other departments 2.4% as the city finalizes a budget for council consideration on April 28.
Mr. Freeman, the city manager, told staff the city remains in a "good position financially" but faces a budget gap because revenue growth has not kept pace with rising personnel costs. "Our reserves are really strong," he said, adding that sales-and-use-tax receipts are slightly ahead of projections this year but below the long-term average the city needs.
He gave specific figures: sales tax growth has ranged from about 1.4% two years ago to about -0.5% last year, and about 2% this year compared with a normal long-term growth of about 3.5%. Mr. Freeman said recent wage increases and step increases add roughly $12 million in ongoing personnel costs, and an increased city contribution to the pension system is about $4 million, leaving a budget gap he estimated at "seven or eight million, maybe $9 million."
To address the gap, Mr. Freeman said he instructed departments to submit proposals trimming expenditures: "I've asked them to propose a 1.4% cut in their budget" for police and fire and "2.4% cut" for other departments, while acknowledging public safety budgets are being treated more cautiously because of staffing commitments. He emphasized the guidance is about proposals and planning, not finalized layoffs, and said the city will try to prioritize vacant positions when possible and offer affected employees alternative placements.
City staff were told the proposed budget will be presented to the council on April 28; Mr. Freeman urged employees to ask questions and seek clarity from managers about how any adjustments might affect workload and services.
The manager framed the exercise as precautionary budgeting: "We're going to manage through this," he said, and stressed the city intends to be transparent about the process and to limit the number of filled positions actually eliminated.
What happens next: departments will return formal proposed reductions as directed and the manager's office will finalize the budget before it goes to council on the scheduled date.
