Printable VersionOn Tuesday, Lake Havasu City’s budget woes for the current and upcoming fiscal year came to a head, as the City Council approved a citywide reduction in workforce.
Twenty full-time employees were laid off in various departments, including three in the development services division, six public works vehicle maintenance and administration workers, two police officers, three firefighters and three finance department employees.
Even more positions have been lost to attrition, 21 overall, including three in each of the following: transit, development services, fire and police.
Kaffenberger had said he would ask employees eligible for retirement to consider doing so in order to save other jobs. Eleven city employees will now retire in the upcoming fiscal year. Six of those employees are firefighters, and two are police officers.
Eighteen part-time employees were let go, as well, with the public works department and airport losing the most. Eight public works employees in various departments, including vehicle maintenance and water were laid off. Four airport employees were cut.
The two departments hit hardest by the cuts were fire and police. A total of 15 fire department employees were let go. The layoffs will cut more than $2.2 million from the fire department budget.
By the end of the 2009-10 fiscal year, the police department will have seven fewer officers on the street or at the facility, which should cut approximately $2.2 million from the police department budget. Included among those laid off are two police lieutenants and two street officers.
The layoffs occurred at all levels within the departments, including department heads. One parks and recreation division manager, a parks and recreation administrative department director, building division manager and vehicle maintenance fleet supervisor were among those let go.
In addition to the parks and recreation division manager and administrative department director, the Aquatic Center also lost one of its supervisors.
While Tuesday’s layoffs cut $14.7 million from the budget, more are likely to come, Kaffenberger said. This includes a $9.7 million reduction in the general fund.
“As the departmental budget reviews continue through this week, I anticipate further budget reductions to be identified and included in the proposed budget that will be submitted to the City Council for fiscal year 2009-10,” Kaffenberger said.
He went on to say the budget reductions have been a moving target since they began, mainly because of updates from the state of Arizona that state-shared revenue estimates may even be less than what was initially thought.
Kaffenberger did point out the agreement reached between the city and Lake Havasu City Firefighters Association that would save three jobs within the city’s fire department. The agreement calls for a 10 percent reduction in pay all across the fire department and the loss of holiday pay.
While the council approved the cuts Tuesday, it did so with reservations. Safety was a major concern for Mayor Mark Nexsen, who said he knew how important programs and services like the after-school program were, but safety is a top priority for citizens. Nexsen proposed raising the fees for the after-school program from $3 to $6 a day. The city is currently spending more than $1 million a year on the program.
The council asked both Fire Department Chief Dennis Mueller and Police Department Chief Dan Doyle if they believed they could provide the same level of service and safety to the community despite the reduction in force. Both department heads said it would be something they would have to work around, but they felt confident the city would continue to be safe.
Mueller did acknowledge closing Fire Station No. 6 could lead to longer response times. Initial speculation surrounding the cuts was the station could face closure.
The city does plan to make sacrifices in ways other than the loss of personnel.
Personnel will see a 5 percent reduction in salary across the board. This includes City Attorney Paul Lenkowsky, who volunteered his hourly pay cut. Lenkowsky’s pay cut would be effective March 31. The city attorney’s office was not unscathed by the cuts. One administrative specialist was let go, and one city attorney position will remain unfilled.
Contracts for bottled water and coffee have been eliminated. City-provided cell phones have been reduced in number, as have take home vehicles.
Holiday and stand-by pay has been reduced. Together, the two cuts should save the city approximately $400,000 in general fund expenses.
Sick pay payout and stability pay have been eliminated for remaining employees at a savings of more than $500,000 together.
The city has also eliminated its contract with the lobbying firm Williams & Associates at a cost-savings of $70,000.
Step-increases of up to $1.5 million in the general fund have been eliminated.
Grant agencies have been asked by the city to reduce requests by 20 percent.
This Fourth of July, the city will not sponsor fireworks at Spectator Point on the Island until the economy improves. This should save the city $27,000 from the general fund.
Using the city’s “rainy day fund” is something Nexsen said is not the solution. He pointed to the state of Arizona using its emergency funds last year and now having to layoff even more employees because it is deeper in debt. Nexsen said he believes the city could experience the same problem a year from now if it were to dig into the fund.
The city could rehire many of the positions it has eliminated if the economy improves.
You may contact this reporter at twaggoner@havasunews.com.
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