City looks at cutting services in light of revenue loss

Carson City departments are seeing just what an estimated $2 million revenue shortfall starting in July will look like.

Department managers met late last week to develop a list of possible cuts to be presented to city supervisors Thursday. Among the proposed changes: The library may close on Saturdays and the city pool on Sundays.

Supervisors directed management to trim 3 percent from their budgets. It's the first step in finding solutions, said Mayor Ray Masayko.

"It's probably an opportunity for us to look at our spending patterns," he said. "We want to look first to see if we can live within our means."

Masayko and interim City Manager Andy Burnham said it is unlikely any major decisions will be made Thursday. They say it is too early to tell what services will be cut, if any.

What is certain is the city will be short an estimated $500,000 this year from the loss of sales-tax revenues. Finance Director David Heath said the loss is a result mainly of the relocation of Wal-Mart to Douglas County. He expects more losses from the closing of the Carson Kmart and development of more retail stores in Douglas County.

Considering the loss of revenues, financial officials said they expect next year's budget to be short nearly $2 million.

The board will be presented with ideas and possibly give staff more information about what they might consider to make up for revenue shortfalls, like raising taxes, Masayko said.

The city has $2 million in "rainy day" funds set aside. It is uncertain whether any of that will be used next fiscal year.

"It's going to be wise to hang on to some of those reserves," Heath said. If the loss continues in future years, the city will at least have that money to pay for capital expenses, like purchasing safety equipment.

"There's no point in hiring a cop (in the future) if you don't have a car for him," Heath said.

Library director Sally Edwards said her department is considering several options. She explained the proposed cuts to the Library Board of Trustees last week, she said. The proposed cuts are:

-- Closing the library on Saturdays to save $7,000 in utility costs. Staff would try to move Saturday programs to other days. The library would open at 9 a.m. weekdays to try to make up public hours.

-- Discontinue the interlibrary loan program to save $1,500 a year in postage. The program allows library users to order books on loan from libraries around the country. The library pays to ship the books.

-- Stop offering free printing from the public computers for adults, a savings of $1,500 a year in paper.

-- Save $1,200 a year in janitorial and operating supplies, like paper clips and cleaning fluids.

-- Cut $500 from operating expenses.

-- Cut $31,000, or 20 percent, from book purchases. The library spends $151,225 on new books, half the recommended funding for serving a community the size of Carson.

The cuts concern Edwards and the board because they already struggling to provide services to a growing population.

"We're very concerned about the 3 percent reductions," said library board trustee Karen Grillo. "You've got to look at every little thing you can do to make the end goal."

The fire department is not looking to cut staff time or services, but has identified $50,000 savings if it does not purchase equipment and tools, said Fire Chief Louis Buckley.

To make up for immediate shortfalls to this year's budget, Burnham has started "position control and vacancy management measures" for all positions and employees under his appointment authority for all funds, he said in a memo to department heads Feb. 24.

Also, Burnham has suspended all general-fund capital spending that has not been obligated and limited general-fund services and supply spending to 8 percent of the annual total in each month.

The board will likely put off the start of the budget session set for March 17 to give staff more time to figure out solutions, Masayko said.

IF YOU GO

What: Budget discussions at the Board of Supervisors' regular meeting

When: 8:30 a.m. Thursday

Where: Sierra Room, Carson City Community Center, 851 E. William St.