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City services could take budget hit
Published 1:39pm Thursday, February 26, 2009Part-time and seasonal workers may be among the first to feel Fergus Falls’ budget crunch, according to a city official.
Fergus Falls is in the midst of what City Administrator Mark Sievert calls “extreme belt-tightening” as the city braces for anticipated cuts in state aid over the next two years — specifically, $857,000.
In the past month, city staff have identified hundreds of thousands of dollars worth of budget reductions across all departments. At this point, the proposed cuts are general enough to allow city council members some flexibility in prioritizing some expenses over others.
“Probably the biggest area where we’re going to see reductions is in personnel for ‘09,” Sievert said Thursday. “That’s primarily in the areas of seasonal, part-time and reductions in overtime. But that will carry over into 2010 and from there we’re going to have to see some re-organization and maybe some numbers reductions.”
In speaking to members of the Finance, Personnel and Development Committee, Sievert said he did not have concrete information on personnel changes. When he does, staff will be the first to know. Current personnel budgeting does not plan for wage and benefit increases.
Changes in staff inevitably mean some changes in city services. Lifeguards are planned for Pebble Lake beach this year, but not in 2010. The city may not provide swimming lessons, but is working with the Fergus Falls Area Family YMCA to ensure they are still available in the area, Sievert said. The city will not operate the Lake Alice warming house, though staff will clear space on the ice for skating. Cuts to seasonal workers mean only two parks will have flowers: Veterans Memorial Park and Van Dyk Park.
Organizations like A Center for the Arts and the Otter Tail County Historical Society, which typically receive funding from the city, have been told to expect smaller contributions. Productive Alternatives receives an annual $50,000 payment from the city towards its bus service. That number may change as well.
Sievert called some of the proposed cuts doable but not sustainable. The city can only go so long without wage and benefit increases or new technology purchases, for example.
City staff may need to come before the council more often for budget revisions, Sievert said, as the budget is so tight it does not plan for many out-of-the-ordinary events.
“I think it’s prudent that we prepare for the worst,” said fourth ward council member Randy Synstelien, “and if (cuts) come in less (severe) we can adjust accordingly.”
An updated state budget forecast is scheduled for release Tuesday. Gov. Tim Pawlenty is expected to make any revisions to his budget proposal within the two weeks following, Sievert said. From there, DFL leadership in the Legislature will craft their own proposal.
