The Steamboat Springs City Council directed its staff Tuesday to balance the city's 2009 operating budget without using any of its reserves.
The $1.9 million decision could mean a hiring freeze, no pay increases for existing city personnel, the elimination of benefits for seasonal employees and layoffs. It could also mean reductions in community support spending in excess of the 40 percent cut recommended in a proposed 2009 budget presented to council members during an all-day hearing Tuesday.
The 2009 budget as proposed by interim City Manager Wendy DuBord and Finance Director Lisa Rolan showed general fund expenditures besting revenues, $27.7 million to $25.8 million, reducing the operating fund's balance by more than 15 percent. Council members unanimously directed staff to come back with a plan to close the gap. While she said the current economic downturn might warrant dipping into reserves, Councilwoman Cari Hermacinski noted city expenditures have increased 49 percent since 2004.
"I think what we have here is a trend of letting our spending exceed what we collect, and we've got to reverse that," she said.
Doing so won't be easy, said DuBord, who said it wouldn't be possible without layoffs and painful cuts in city services.
"There's not a service we provide that some special interest or some group of citizens values more than anything else we do," she said. "It's going to be very difficult."
Fearing she was "going out on a limb," Rolan said she would come back with a proposal to recommend $0 in community support spending.
"You're going to ask me and the management team to cut core services and personnel, yet you're keeping $1 million in community support," Rolan said.
The Centennial Hall crowd - scarce for most of the day as council members discussed their budgets for their operations, enterprise funds, internal services and capital projects - grew exponentially and filled the room as the scheduled time arrived to discuss community support spending, a relatively small but emotional portion of the city budget that goes toward organizations dedicated to areas such as the arts, human services and the environment.
While the spending has been described by some as "nonessential," several proponents said the organizations are integral to Steamboat's character.
"Something's happening here, and I am astounded at what art has come out of here," said John Sant'Ambrogio, founder of the Strings Music Festival. "Please don't let what's happened to Steamboat change. : To me, this is essential."
And, with the city so heavily reliant on sales tax, others said it would be foolish to cut spending to organizations that they say attract visitors.
"The city has a vested interest in marketing the hell out of itself," said Towny Anderson, president of Mainstreet Steamboat Springs and a former councilman.
In the end, council members agreed to leave community support at the heavily reduced level proposed by city staff.
"I'm confident that all these community organizations are stronger than this budget," Councilman Jon Quinn said. "So hang in there."
No spending - with the possible exception of snowplowing - was considered sacred during Tuesday's hearing, as council members took aim at a number of areas to possibly reduce costs. Councilman Steve Ivancie criticized the city's contribution to the Steamboat Springs Chamber Resort Association to perform summer marketing, believing there is not an adequate return on the investment.
Councilwoman Meg Bentley, noting her love for the arts organizations whose contributions are being cut, said the city's spending on the Parks, Open Space and Recreational Services Department also is nonessential and should receive a hard look. Hermacinski pointed to a historic preservation budget with a proposed increase of 62 percent.
No official action was taken at Tuesday's meeting. The 2009 budget is scheduled for adoption in late November or early December.
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