The city may need to eliminate as many as 12 positions next year to bridge an anticipated $1.2 million budget gap brought on by weak economic conditions. City Administrator James Archambo said the numbers are still up in the air, but the city will cut as many jobs "as necessary to make the budget balanced."
Reduced state aid and a drop in recycling revenue - both caused by ongoing economic turbulence - are expected to hurt the city's bottom line. Further, staffing cost increases and debt service for the city's new fire station will contribute to an estimated $2 million in budget increases.
While drops in health insurance costs and ambulance fees will add $880,000 in budget decreases, that still leaves the budget $1.2 million short.
Archambo said the difference mostly will be made up through staff cuts via attrition and, if needed, layoffs, but all areas of the budget will be reviewed for potential savings. He also hinted that city fees could rise to bring in extra revenue.
"We'll be looking at the entire budget, of course, and we're always looking for means of being more efficient," he said. "We'll be looking at other possible cuts as we get more into the budget."
Archambo disclaimed the "very early" snapshot of the $53 million budget as subject to change, but for now the property tax levy is set to increase by 3.3 percent to $36.7 million from this year's $35.53 million.
Residents would see a property tax rate increase of 3.29 percent under the budget, raising last year's rate of $6.69 per $1,000 of assessed property value to $6.91 per $1,000.
However, several Common Council members said they hoped to see a smaller increase in the tax rate than the one presented, and some asked for no increase.
Alderwoman Jacqueline Jay said she hopes to see a decrease in taxes. Jay cast the lone vote opposing last year's budget because she disagreed with the proposed tax increases.
The budgeting process will continue throughout the year, with the executive budget moving to the Common Council's budget committee in September and the full council in November.
Archambo said this year's budget will prove difficult, but the city's sound fiscal footing will help. The city's firm property tax base and AAA bond rating give it a leg up, he said.
"Financially, we're in very solid shape," he said. "We're starting from a much more solid, more better place than most municipalities."
By the Numbers
$1.2 million
estimated budget shortfall
12
positions up for elimination
3.3
percent anticipated increase to tax levy as of June 30
3.29
percent increase to resident tax rate
$6.91
per $1,000 of assessed property value tax rate under proposed budget
WauwatosaNOW.com
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