Budget Update
02/03/2009

Fresno City Manager Andy Souza today provided a budget update to the City Council which included a preview of contingency plans under consideration for reducing current year expenditures by approximately 4 percent.

In contrast to many cities and counties across California, Souza stated that the City of Fresno will finish the current fiscal year with a surplus, based on current projections. The reductions are being implemented to offset anticipated revenue shortfalls for the 2009-2010 fiscal year, which begins July 1.

The planned reductions are anticipated to result in savings of about $5.5 million for the remainder of the fiscal year. City management staff has been meeting daily to review proposals from department directors for reducing expenditures. In addition, a variety of efficiency measures are under consideration for implementation citywide. Labor groups have also been included in discussions.

While no layoff of regular employees is anticipated, a reduction in temporary staffing may be necessary. The City intends to work with any affected temporary workers to assist them in finding new positions.

Meetings between the Mayor’s office, City Manager’s office, city department managers and budget staff are continuing, with recommendations expected to be finalized by the end of this week. Souza will return to the City Council with another report on Tuesday, February 10th.

CONTACT: Randy Reed, Director of Communications (559) 621-7777

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