Despite conservative budget projections, a serious shortfall caused in large part by a housing crisis has led Mapleton city to look for ways to keep its budget balanced.
The city's budget was slimmed down about 25 percent during the summer. Since then, the remainder of the budget has been cut roughly in half, Mapleton Mayor Laurel Brady said.
"At this point, there's just nothing left to cut," Brady said. "We've cut back every single thing we can."
For this year, projected home building-related revenues for the city were $300,000 -- already a steep drop from the $500,000 of the previous year -- but it now appears the total will only reach $50,000-$60,000, Mapleton city manager Bob Bradshaw said.
After department heads within the city found ways to cut more than $150,000 from the budget, the city was forced to do things the mayor said it wanted to avoid: charge city employees for health benefits and cut back on staff. With one employee temporarily laid off and four more working reduced hours -- at least until a further review of economic conditions takes place in March -- the city has slashed $80,000 from its payroll, Bradshaw said.
Further cuts have subsequently been made, and the city is unlikely to make any new hires before July 1, which is the beginning of a new fiscal year, Brady said. Additionally, 10 percent of the cost of health benefits -- once provided free of charge to Mapleton employees -- will now be paid by city employees, according to Brady and Bradshaw.
"We're forced to make those painful choices because of economic circumstances over which the city has no control," Bradshaw said.
Other cuts have come from eliminating training seminars and travel for employees, and reducing city landscaping and snow-removal efforts. Salt will now only be poured on snowy roads in the most critical intersections and crosswalks, as opposed to the bare-road policy the city had in the past.
Property taxes have increased, with the tax portion received by the city jumping an unprecedented 54 percent, Bradshaw said. However, the bulk of property tax dollars goes to the school district, Brady said.
The city continues to look for solutions to its money crunch, and a number of steps have been taken to help keep the city afloat financially. An economic development committee has been formed as the city intends to recruit businesses as a way to boost a market low on retail outlets and sales tax revenue, Brady said. She added that the city wants to be supportive of home-occupation businesses, which also generate sales tax revenue.
Some businesses have shown interest, but nothing is imminent, she said.
"They're working on it, but it's probably not going to bear fruit in the next six months," Brady said.
"We're trying everything, but not counting on anything.
"I think our residents recognize these are tough times. They expect us to be frugal, and we're doing everything we can -- and more than we thought we could -- to be frugal. We're really looking forward to when the economy bounces back."
With spending decreased, the budget is now in balance, Bradshaw said.
"The only good thing about this is we have identified and corrected the issue, painful though it is," he said.
Posted in Local on Wednesday, November 12, 2008 11:00 pm
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