A very tough budget year.

This is by far the most difficult budget I have had to produce yet.  Even with expenses cut down to bare bones, we still have additional cuts to make for the 2011 budget. This year’s revenue forecast is almost $400,000 less than 2010.  To balance the budget it will take a combination of reductions in hours for some staff members, furlough days and still a strong possibility of layoffs.  The problem is that these cuts will also impact efficiency.

Since taking office I have stressed conservative spending and sound financial practices in our city.  I understand in times like these, no one has the ability to absorb more taxation.  I have long believed the best way to increase revenues generated in our city is to attract new businesses and to help our existing businesses do better. These principles helped us pay of millions of dollars in debt and to build a reserve fund that has sustained us these past two years.  But those reserves are now to low to be of help.

I see positive signs our economy is turning around.  New businesses are looking to locate here; other businesses are tooling up preparing for new opportunities. Being in construction myself, I have seen many of these changes occurring over this past month as construction companies are again hiring and new permits are being issued.  I have little doubt that if we make it through this budget cycle we will see improvement over this next year.

Last July, many of Pacific’s residents participated in an online survey that helped the City insure our priorities were consistent with yours.  As much as possible we will use those priorities, while keeping an eye on what our city will need as we recover from this recession.  If we make a cut today that saves us a dollar, yet cost us $5 next year then we continue to slide backwards instead of progressing. 

I will be submitting my recommendations and my proposed budget on Monday October 18^th at the Pacific City Council meeting. It will not be pretty.  It will be painful. But it will represent what I see as the best options for the city to emerge stronger as our economy recovers.