Tempe continues to seek budget solutions for next fiscal year

City of Tempe works on difficult budget solutions for 2010-11

Tempe, Arizona – The City of Tempe continues to work on finding solutions for unprecedented difficulties in balancing the 2010-11 fiscal year budget, brought on by a weak national economy and an even weaker local economy. Community members can learn more and participate in the effort at www.tempe.gov/budgetplan.

By Dec. 31, managers of the city’s 17 current departments will recommend to City Manager Charlie Meyer a total of $30 million in cuts in order to balance the $186 million General Fund budget. Each department’s designated reduction amount is based on a number of factors, including a formula that called for $2 in cuts in non-public safety departments for every $1 in cuts made by the Police and Fire departments.

Meyer will use the department manager-recommended cuts, which have not yet been identified, to compile a citywide plan for 2010-11 by late January. In early February, Tempe City Council members will give preliminary consideration to Meyer’s plan. The cuts could include options such as workforce reductions, program eliminations and reduced service levels. Final Council approval of the budget will not happen until May 2010.

“These may be the most difficult reductions in Tempe’s history,” said Meyer. “None of the possible cuts will be desirable and it is inevitable that our community will see a degree of reduction in some services. Our challenge is to make these changes in order to preserve Tempe’s economic health and to continue providing the excellent service that our community members deserve.”

Tempe projects that its deficit for the 2010-11 fiscal year, which begins July 1, 2010 and ends June 30, 2011, will be at least $22.4 million. The city aims to identify $30 million in possible cuts – $7.6 million over the deficit amount – in order to allow for an economy that may worsen or be slow to improve, fiscal changes at the state level that may harm Tempe, and flexibility as the City Council decides which programs, positions and services should continue.

The City Council asked Meyer last month to bring back a final plan to reduce the number of city departments as part of the 2010-11 budget balancing effort. In part, the plan calls for eight major departments to merge into four, replicating a city structure that had been in place within the last decade. The departments that could merge are: Public Works/Water; Development Services/Community Development; Parks and Recreation/Community Services; and Financial Services/Information Technology. The estimated savings from the consolidation are being determined.

In November, the city held several forums for employees and community members, in order to provide details about the projected 2010-11 budget deficit and background information about city revenues and expenses. Throughout November, seven teams of city staff members dissected the city budget and city operations to come up with recommendations for reducing the city’s expenses and increasing its revenues. The work of those teams will conclude in mid-December and their recommendations will be strongly considered by managers who are identifying the $30 million in cuts.

More public and employee forums will be announced this month; they will occur in February and March to provide information about the specific plan that will be considered by the City Council. Community members and employees will again be welcome to attend the forums and share their thoughts.

Tempe has established a Web page (www.tempe.gov/budgetplan) that is frequently updated with resources for employees and community members, including transcripts and videos of past forums, an online form for comments and questions, a video from Meyer and Budget Director Cecilia Robles, and more.

Source: City of Tempe

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