Posted: March 31, 2009 16:02:27 PST
City officials announced this week that they anticipate at least a $5 million budget shortfall in 2010, which could mean eliminating as many as 50 to 75 employees from the city's workforce of about 800.
Bellingham Mayor Dan Pike announced to employees this week that the latest financial projections indicate the city may be faced with at least a $5 million shortfall in the 2010 budget, with similar shortfalls projected in three or more of the years thereafter.
He said solving these problems will require extensive budget cuts, including eliminating as many as 50 to 75 full-time equivalent positions.
“I do not throw these numbers out lightly or to cause undue concern among employees and the public, who depend upon the city for essential services. I want to make sure people are informed as to the size of the problem,” he said. “Our government simply must become smaller to remain affordable.”
In messages and meetings with employees, Pike has said City government needs employees’ attention, creativity and innovation now more than ever before. He said that holds true as well for members of the public, who will have opportunities in the coming weeks and months to consider priorities and respond to budget reduction proposals.
Pike said he is gathering feedback from city employees, various stakeholders and the public. Recommendations from the Fiscal Alternatives for Stability Taskforce (FAST), an internal task force charged with looking at opportunities for efficiencies throughout city government, are expected in April.
Once the Mayor has reviewed this work, he will make proposals to the Bellingham City Council as part of the 2010 budget process, which begins later this spring. He said he expects that by mid-summer Council will be considering options and weighing the costs and benefits of various budget reduction proposals, with final decisions expected in the fall.
On March 23, the City Council gave preliminary approval to the most recent round of city budget reductions, intended to stabilize the city’s finances for 2009.
“While these were difficult decisions to make, unfortunately, our hard work is not all behind us,” Pike said.
He said he is committed to finding innovative cost savings to reduce the number of layoffs that are necessary. But with about 66% of city General Fund expenditures going for employee salaries and benefits, he said, the City will not be able to go into 2010 without additional reductions in force.
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Media Contact:
Mayor Dan Pike or David Webster, Chief Administrative Officer
778-8100
