The city of Hailey responded to a $500,000 revenue shortfall for 2008/2009 by cutting staff positions and cutting spending on city equipment. The shortfall in revenue resulted from a sharp reduction in building permit application fees. City officials say the budget cuts will not affect the level of services in the city.
Hailey administrator Heather Dawson presented a draft budget proposal to the Hailey City Council Monday, outlining measures taken by the city to offset an extended downturn in the housing market. The city expects a continued decrease of 35 percent in revenues from building permit applications in the coming fiscal year.
"We have eliminated 10 1/2 full time equivalent positions within the planning and public works departments," said Dawson. "None of these cuts will effect the level of services in the city. The good news is that after three years of working toward a balanced budget we are there."
Several of the job cuts resulted when the city chose not to fill vacancies left in the streets, parks and planning departments. Other job cuts were the result of consolidation within city departments.
Dawson said the staff cuts will save the city $200,000 in salary expenses and that no one was fired in the process.
But City Engineer Tom Hellen doubled up on his duties earlier this spring when he assumed the added role of Public Works Director.
"I'm busy, but it's going very well. I have very good superintendents and they keep me out of trouble," he said.
Last week 12 employees in the Public Works Department shifted to a ten-hour, 4-day workweek. The change was made to save gas money for many of the employees who commute to Hailey from the south.
"This is also a result of the city working to reduce its carbon footprint," said Hellen.
The draft budget proposal also calls for the suspension of "high-dollar" replacement and repair operations. These include the fire department engine replacement program ($65,000 per year); the public works building systems replacement program ($65,000 per year) and the police department patrol car program (the city will lease a vehicle for $14,000 rather than purchase one for $35,000).
"As we build back from this economic downturn, these will be the first programs to be re-funded," said Dawson.
The Hailey Police Department expects to save $65,000 this year due to a new source of revenue provided by the Blaine County School District for an HPD officer during school hours and school events.
The Hailey Public Library could receive an increase in funding for a half-time staff position.
"The Library is seeing a lot more activity," said Dawson. "We hear that they are getting as many as 300 patrons a day."
Mountain Rides can expect $70,000 from the city's local option tax funds to expand services in the city, a jump from $30,000 last year. The Hailey Chamber of Commerce is on track for $20,000 to fund a new staff position.
The total city budget for fiscal year 2008/2009 is projected to be $10,834,599. This is down $191,473 from the 2007/2008 budget of $11,026,072. The city council will vote on a tentative budget on July 14. The budget will be finalized with a council vote in August or September.
