South Tucson city employees had their salaries cut to control an expected $545,000 budget shortfall.
The South Tucson City Council unanimously approved a 2 percent cut for every $10,000 the 108 city employees earn to make up for the shortfall in the city’s general fund.
The pay cuts that began Jan. 25 will reduce City Manager Enrique Serna’s salary around 23 percent, and Finance Director Ruben Villa’s salary will fall 17 percent.
The city’s $545,000 budget deficit is because of a drop in sales-tax collections revenue and a decrease in revenue from the state, Serna said.
Cities throughout the country are reeling from a decline in revenue, and cuts and lay-offs have become commonplace.
Salaries take up most of South Tucson’s nearly $5.3 million general fund so there wasn’t much else the city could cut, Serna said. The saving between Serna and Villa alone totals $170,000.
“The good news, of course, is that we didn’t have to entertain any lay-offs,” Serna said. It was city employees who suggested the progressive pay cuts, he said.
Even with these measures, the city will still fall short roughly $100,000. The city projects losing an additional $134,000 in sales tax, or 6.3 percent, during the rest of the fiscal year, which ends June 30.
The city council continually audits itself in order to find more cost cutting measures and will review the situation on a monthly basis, said Serna.
“All communities are suffering from the downturn in the economy this year,” Serna said. “It really takes a strategy on a monthly basis to come in on budget.”
The city is adopting other plans to tackle the budget crisis, including reducing the number of cell phones contracted to the city, freezing travel expenses, and leaving a number of already vacant positions open, or filling them with part-time staff.
In the police department, administrative staff began paying for their own gas because of budget shortfalls. The fire department has left open three jobs and the police have decided to leave two positions vacant. However, Serna points out that the city’s ratio of police to population is still above national averages.
The city also is considering a change in its garbage collection fees to make up for part of the outstanding $100,000 shortfall, Serna said. In addition, the city will start auditing businesses that are underreporting or not reporting sales tax.
City employees have begun to deal with the cuts to their budgets and their pay.
“I would rather see my pay cut than see people losing their jobs,” said city clerk Dolores Robles.
