City Manager announces cost-reduction plan

For immediate release
Feb. 11, 2009

City Manager Marc Ott today presented his cost-reduction plan as City revenues continue to drop under tough economic times, resulting in a projected $20 million budget shortfall.

The cost reduction proposals of about 2 percent for non-revenue generating departments attempt to minimize service delivery cutbacks to the general public by delaying some initiatives, not filling job vacancies and taking a larger percentage cut from internal City support services.

The plan presented to City Council will be the subject of a Town Meeting with the City Manager at 6 p.m. Feb. 19 at the Mexican American Cultural Center, 600 River St. The Manager already has had discussions during the past few weeks with some community groups to inform them of the economic picture and receive input on their City budget priorities.

A final action plan will be provided Council on Feb. 26.

"These are extraordinary times," City Manager Ott said. "We have taken a serious look at how we do business. While we know there will be some effect to the general public, these measures will result in meeting essential needs for our residents."

Already, the City Manager has implemented measures that have saved millions of dollars including limiting City employee pay raises to 2.5 percent, freezing vacant positions unless deemed critical and delaying a market pay adjustment for some employees.

The proposal comes in the face of dropping sales tax revenue, less commercial and housing development and reduced income from City financial investments. This is the third round of necessary reductions. Last summer, the City closed an $8 million gap and entered the current budget year reducing expenses by another $25 million.

The proposal outlined today includes:

• Adjusting library operating hours so branches are open 40 hours a week instead of 49.5 by closing earlier and/or opening later on certain days.
• Postponing implementing a Park Rangers program.
• Closing the South Day Labor Program.
• Reducing Police and Emergency Medical Services overtime.
• Leaving unfilled various positions including a Community Court Coordinator, staffing in the One-Stop Shop development center and urban planners.

For a copy of the presentation to City Council, the detailed menu of cost-reduction proposals and a log of public input from the recent community meetings, go to www.cityofaustin.org/budget.

Contact:
Communications and Public Information, (512) 974-2220