FOR IMMEDIATE RELEASE

CONTACT: Adam Mayberry (775) 353-7894, 232-4636

 

Sparks, NV – Today, the City of Sparks took further steps to balance its $72.1 million operating budget for the remainder of the current fiscal year (FY 2008-2009) and will continue the operating reduction into the next fiscal year (FY 2009-2010) by reducing expenditures by another $2.7 million. 

 

A total of 34 full-time employees have been laid off and placed on administrative leave pending City Council approval next Monday, January 12.  A variety of contracts and professional services, along with city programs and projects have been canceled or eliminated.  Additionally, 36 part-time and temporary employees were let go late last year. 

 

The City is projecting a $6.5 million revenue shortfall in the current fiscal year.  Consolidated taxes (CTAX) which make up 31 percent of the City's general fund budget are forecasted to be down nearly 20 percent from last year (FY 2007-2008), equating to a $4.2 million loss.  CTAX revenue was also down nearly 12.5 percent in FY 2006-2007.

 

Other revenue sources such as business licenses and other charges for service are expected to be nearly $500,000 less than one year ago.  While property taxes are projected to be 8.9 percent higher this fiscal year, it is anticipated to be the last year of increases for the short term.

 

So far this fiscal year, the City has made budget reductions totaling $4.5 million.  Today's proposed cuts will bring the total budget reductions to $7.2 million.

 

"We continue to take incremental steps to reduce our expenditures for the public services we provide," said City Manager Shaun Carey.  "Today's actions are the most difficult to make for our team and they will affect the services we provide with pride to our community.  These measures require the layoff of members of our City Team who were very committed to this community.   I know the entire City of Sparks family is saddened to see members of our team lose positions they need to support their lives and families.  It is with a heavy heart that I express my thanks and appreciation for their service, and regret the necessity of today's actions.  We are asking even more from those remaining employees who are committed to public service and to making Sparks a wonderful place for all of us to live and work." 

 

Mr. Carey added, "It all comes down to affordability. Whether you are running a household, business, or city government, and less revenue or income is received, you must begin to find ways to reduce expenses while maintaining the basic and more important needs.  This is the situation we find ourselves in at this time. There are some services we have provided in the past that are simply not affordable today."

 

"We have exercised extreme diligence with the city's fiscal affairs for two years in a very incremental fashion, reducing and eliminating a number of programs, projects, and services.  We have no other choice now but to reduce our workforce," said Carey.

 

The City estimates that the budget reductions proposed today should be sufficient to balance the budget through FY 2009-2010 (ending June 30, 2010).  Last year at this time, the city had 634 full-time employees.  After today's action, the city has 552 employees.  Today's staff reductions do not include police officers or fire fighters; however, the City has frozen 6 vacant police officer positions and reduced staffing levels in our fire department to reduce expenditures.

 

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