City needs to cut $500,000 deficit.
CRYSTAL FALLS -- Facing a budget deficit of more than $500,000, the city of Crystal Falls is making cuts across the board. The city council last night took the first step by cutting $145,000 from the budget.
The city began by cutting two part-time police officers, annual contributions to local organizations, and not replacing departed employees. But can the city do enough to avoid further, more serious layoffs? The city auditor said it is unlikely, and more layoffs are still needed.
"The costs of benefits are pretty substantial,” said city auditor Scott Kenney. “With a layoff, you do have some additional costs for unemployment, but they pale in comparison to the savings that you're going to have."
Another possible place to save is with the fire department. Right now both the city and the township pay $140,000 per year and run it jointly, but the city could save money by turning over operations to the township. Nothing was decided, but Mayor Janet Hendrickson strongly opposes the idea.
"Not just because we're at a point where the city is badly broke, but just because of the history of the fire department,” said Hendrickson. “This is a tough time for me."
The council also proposed implementing furlough days for city employees to avoid layoffs. But Kenney said that would be only a short-term fix for a long-term problem.
"I think that when all is said and done, the furlough days...you may be able to implement it on a short-term basis,” he said. “I think you're going to be facing long-term layoffs and that's an issue you're going to have to address at some point in time.”
The city has scheduled a meeting Monday to decide if layoffs are necessary. Council also voted to lease or sell the city's golf course which is already advertised on its Web site.
However, the golf course is separately funded and won't help the general deficit.
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