HUBBARD - The city will be looking at a reduced permanent budget for 2009.
Mayor Arthur Magee informed City Council earlier this week that declining revenues and tax collections has reduced the budget for the city by about eight percent.
Council got a look at a tentative 2009 budget earlier this month that calls for just over $18 million in spending. The city has been operating on a temporary spending plan so far this year. By law, they must have a permanent spending plan in place by April 1.
Magee also said the state informed him that the state has reduced the city's share of local government revenue in 2009 by $12,000 because of declining tax collections statewide.
Magee is proposing a wage freeze for all city employees, as well as layoffs of one employee each from the custodial staff, street department and waste water treatment plant.
Magee also wants all discretionary costs to be reduced as much as possible and wants to move school crossing guards employed by the city to the school district.
Magee noted that revenues in the city's utility funds are stable, but there was a slight dip in consumption noticed in January.
Contracts with the unions representing city employees are up this year and Magee said he will be asking them in negotiations to take the wage freeze.
Additionally, the city's Park and Recreation Board will be cutting summer programs to eight weeks and will also do away with a part time person.