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HomeMy WebLinkAbout08-14-09 Despite new taxes, City will reduce 55 positions in 2010 Office of the Mayor NEWS RELEASE August 14, 2009 3:30 p.m. Despite new taxes, City will reduce 55 positions in 2010 Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 or Catherine Fanello, Controller, 235-9216 The City of South Bend will cut its salary expenses overall by a total reduction of 55 positions, in 2010 compared with 2009 levels, according to a summary of 2010 budget projections prepared by City Controller Catherine Fanello. The overall full-time equivalents (FTE) of City departments went from 1,216.09 FTE in 2008, to 1,191.02 FTE in 2009 and will reach a projected 1,135.20 FTE in 2010. The $49.3 million total personnel cost for 2010 is reduced by nearly $1.8 million when compared with 2009. The 55 positions being cut for the 2010 budget illustrate the extent of budget reductions still necessary even after the adoption of increased Local Option Income Taxes for St. Joseph County. Were the taxes not adopted, preliminary budget projections showed the need to cut an additional 98 employees. Since 2000, the City of South Bend has cut more than 205 positions, a reduction of 15 percent from its 1,341 employees in 2000. Compared with 2008 levels, the City has cut more than 80 positions as a result of revenue declines from the state’s property tax caps. Despite projections of retaining full force levels for the Police and Fire departments, total public safety staffing will fall 3.6 percent by 2010 from 608 FTEs in 2008 to 586 in 2010. The loss of 22 employees particularly impacted civilian employees in the Police Department. Parks and Recreation staff will be reduced by nearly 15 percent, from 121 in 2008 to 103 in 2009. Nine maintenance staff and four recreation staff were included in the reductions, along with two greenhouse employees whose responsibilities are now being assumed by the Botanical Society. The number of employees in general government departments – Mayor’s and City Clerk’s offices, the Common Council, Administration & Finance, Human Rights Commission and Legal – fell by more than 10 percent, about seven employees. The Mayor’s Office had the largest reduction of these departments, 22 percent reduction, over the two-year period. Community and Economic Development cut 8.6 FTE between 2008 and 2010, a 26 percent reduction. The department will have 24.4 FTE in 2010. Code Enforcement and Building departments each cut two positions. The Public Works department cut 17 positions between 2008 and 2010, a reduction of 6 percent to more than 273 FTE. - 30 -