POSTED: Wednesday, Jul. 28, 2010

Bellingham City Council approves budget cuts, layoffs imminent

BELLINGHAM - Five city staff members will lose their jobs and another will be reduced to half time after City Council members unanimously approved reducing expenditures in the wake of continuing deficits Monday, July 26.

In addition, the council approved other changes, including cutting some other positions that are, or soon will be, vacant for a total of 10.75 full-time equivalent positions. Another 5.75 positions will be frozen for the rest of 2010.

The moves will save the city an estimated $427,000 in 2010 and $800,000 in 2011, according to city documents.

The action came the same day that Chief Administrative Officer David Webster told the council that it's likely in 2011 that residents will begin to see major effects on city services and how those services are provided, with less staff on hand to keep in contact with residents who visit City Hall and other government offices.

Departments began working on 2011 budget proposals the same day the cuts were made for 2010. The mayor is scheduled to announce his preliminary budget in September, propose a budget to the council in October and a final budget is scheduled for approval Dec. 13.

Cuts took place at the recommendation of Mayor Dan Pike's administration as revenues continue to be behind projections.

While sales tax is up from where officials hoped, other sources of revenue, such as Business & Occupation taxes, are still hurting.

Officials called it another difficult but necessary move. Even when the city isn't spending more on programs or services for residents, the cost of doing business is increasing, particularly health-care costs, said City Finance Director John Carter.

"Is there no end to this?" wondered Councilman Stan Snapp, saying he was concerned about the city potentially tapping reserve funds again in 2011.

It would be the fourth year in a row in which the city has used reserve funds to balance the budget. The city is projecting the general fund will have a $2 million deficit heading into 2011, Carter said.

The additional changes now mean the city will have lost nearly 70 positions since layoffs and vacancy eliminations began in 2009, Webster said. In 2008, the city had about 921 full-time equivalent positions, including seasonal workers. Including the new layoffs and vacancy eliminations, the city will be down to about 852 positions, including seasonal workers.

Council member Terry Bornemann said despite issues with costs, he would strive to protect services for residents dependent on the government. That includes library deliveries of books to people who are homebound or in nursing homes. Bellingham Public Library Board members recently approved cutting that program as part of a budget exercise the mayor required of all departments.

No decision has been made on those cuts, and the council would have to approve the move.

"For services for our most vulnerable," Bornemann said, "I will stand strong."