City lists budget cuts, discusses future cuts

April 19, 2010

The Belen City Council on Thursday unanimously approved a plan to eliminate 26 city government positions, effectively cutting more than $956,000 from annual payroll.

Belen is facing a projected $3.2-million deficit in the next fiscal year beginning in July, resulting from a combination of the continuing economic recession and years of the city government budgeting more expenditures than projected and actual revenue.

Included with the reduction in force plan were lists of previous actions taken to trim the budget:

Accomplished by the prior administration:

Stopped overtime
Changed health insurance percentage from 10/90% to 20/80% (except for police 100%)
Started attrition: building inspector, RSVP coordinator, police department records clerk, firefighter, sewage laborer
Transportation system transferred to Rio Metro (4 drivers)
Eliminated life insurance (city paid 100%)
Ordered 20% department budget reduction
Reduced purchasing

Accomplished by the current administration:

Closed gas accounts; changed to gas credit cards
City vehicles no longer going home (except police)
Halted all requisitions and purchase orders except for emergencies and maintenance
Moving RSVP to the recreation building; allows the senior citizens program to pay entire utilities costs
Stopped cleaning services; employees will have to clean their areas, including bathrooms
Continuing attrition: wastewater laborer, police officer, emergency manager, accounting clerk, sports coordinator
Halted paying vendors to get payroll and bond payments made
Looking into services and products that can be sent out for request for proposal or bid
Implemented employee voluntary furlough

All of the actions already taken, including the elimination of 26 positions, will reduce the projected deficit by half, according to the city’s finance director.

Several proposals are circulating which recommend additional cuts, such as temporarily closing the Belen Community Center.

Posted in: Budget