Politics & Government
Hazelwood City Council Presented $31.4 Million Budget for FY 2014
The City Council has to weigh the down revenues and a more than half million dollar deficit in the next fiscal year budget.
No one knows better how hard it is to bounce back from a recession than the City of Hazelwood.
Hazelwood City Manager Edwin Carlstrom presented a $31.4 million budget for 2013-2014 during a public hearing Wednesday evening. Despite the trims and cut corners done by the administration, the city will still have an approximate $692,000 deficit.
“This was a tough budget this year that I’m presenting to City Council,” he said. “Overall, it’s a good plan.”
Carlstrom pointed to the revenues as a large cause of problems with the budget as they are down by $400,000. The city sales and use tax, which is a driving source for revenues, remains lower than totals prior to the recession. Carlstrom said it is estimated that $11.3 million will be generated in the next fiscal year, which is 1 percent less than it was in 2008, which is the last point of highs.
City employees took some of the biggest hits in the budget department as it doesn’t include a cost-of-living raise like in past years and a hiring freeze will be put into effect as well.
City Finance Director Lori Helle said that the employees with a step increase, which is given to employees who have been employed with the city for less than 11 years, will be given their step, which accounts for $146,000 with benefits. Helle said that in previous years the step increase has not always been given, such as in 2010.
The administration also cut travel unless its required training, which saved approximately $115,000 for the city.
With the city facing a deficit, Helle pointed that the reserves for the city would decrease to approximately 21 percent, and it’s estimated that the city will end this fiscal year at 24 percent.
The Hazelwood City Council will take its final vote on the proposed budget at its June 19 meeting. The Hazelwood fiscal year will start July 1.
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