The days of 2009 are waning, and the City of Omaha is still struggling to finish the year in the black.
The city’s budget shortfall has narrowed since this summer, dropping from $12 million to $9.5 million due to budget cuts, Mayor Jim Suttle announced Wednesday.
Suttle said he continues to explore several options to balance the budget, including tapping the city’s cash reserve. He also said he is looking for ways to balance the budget that do not involve further cuts to city services.
Earlier this year, the city announced layoffs and cut programs.
“Our projections through the end of the year are conservative. We’re preparing for the worst-case scenario, but hoping for the best,” said Suttle.
The options:
— A wage freeze for the city’s police and firefighters. That would save the city’s current budget about $4.2 million. The city is currently in negotiations with the police and firefighters’ unions. The firefighters have signed off on the idea, but police are still in talks. “The mayor hopes to have an answer by the end of October,” said Pam Spaccarotella, the city’s finance director.
— Tapping an existing sewer fund. The fund is used to operate the city’s sewer system. It is funded via a user’s fee found on residents’ utility bill. State law allows the city to use part of the fund to pay for city services, which it has not done in the past. By tapping the fund, the city could bring in another $2 to $3 million into the city’s general coffers.
Residents would not have to pay more on their utility bill to cover this transfer. The amount being talked about is a “small percentage” of the fund’s balance, said Ron Gerard, the mayor’s spokesman.
It also is not expected to delay or impact the sewer overflow project mandated by the federal government, although the money is coming from the same fund, Gerard said.
— And, lastly, the city could tap into the city’s $5 million cash reserve. “It is not a method we would choose. It is as a last resort,” Gerard said.
Contact the writer:
444-1309, robynn.tysver@owh.com
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