Last summer the city of Hailey responded to a $500,000 revenue shortfall by cutting staff positions and cutting spending on city equipment. The shortfall in revenue resulted from a sharp reduction in building permit application fees.
That trend is continuing.
Following a second quarter budget analysis, Hailey will once more cut expenses to meet declining revenues, to reach a 7 percent cut in general fund operations.
The city will forego $88,700 in expenditures on computer equipment, telephone lines and communication, clothing and cleaning, street-lighting, park building repairs, and fuel expenses.
The decision to make the cuts was made after city treasurer Becky Stokes reported Monday night to city council that Hailey received $205,000 less revenue in the second quarter compared to last year, and budgeted $110,000 too high for its expenses. As a result, the city had to cut $314,000 in expenses half way through the fiscal year in order to retain a positive cash flow.
"We have filled the gap," said Stokes. "It is good to have our over arching goals met in a collaborative effort."
Mayor Rick Davis congratulated Stokes on her work on the budget.
On Tuesday Davis told the Idaho Mountain Express that the cuts will not result in a decrease level of city services.
"Let's hope the blood-letting stops soon," he said.
In other Hailey news:
· The City Council also discussed its long-term capital improvement plan Monday night, which includes plans to re-build Woodside Boulevard, rebuild the Rodeo Arena, and build restrooms at McKercher Park.
The council agreed that the funding for the projects would require going to the citizens of Hailey to raise taxes through a bond.
"There will be an educational process to let people know that within two years we will be coming to the people of Hailey to ask for a sizeable bond,' said Davis.
Tony Evans: tevans@mtexpress.com
