CRYSTAL FALLS - Furlough days may be in the future for city of Crystal Falls employees as the city council continues to tackle financial problems.
During a special meeting last week, CPA Scott Kenney told the council that its general fund was down $425,000 in the year ending September 2009.
He added that layoffs would likely be necessary for the city to balance the budget.
At the council's Monday meeting, interim city manager Dorothea Olson argued against using layoffs as a solution.
"With layoffs, you have unemployment costs," she explained. "It will negate the savings."
Olson proceeded to give the council members several suggestions for cuts, including:
- Furlough days. With one furlough day per pay period, the city would save up to $74,000.
- reduce police coverage by eliminating all part-time officers. The city would save up to $17,000.
- A 10 percent reduction in pay for employees.
- Eliminating annual contributions to the Iron County Museum, the contemporary center, and the Crystal Theatre. The city would save $4,400.
- Not hiring a city manager. When former City Manager Charles Nordeman resigned last year, Clerk-Treasurer Dorothea Olson took over his duties with no increase in pay.
- Reducing spring clean-up services.
- Cuts at the golf course.
Olson suggested that the council hold a special meeting as soon as possible to take action on these suggestions. City Attorney Geoffrey Lawrence added that Kenney should be present at the meeting for advisory purposes.
The meeting was scheduled for Wednesday at 5 p.m. in City Hall.
In a related matter, the status of the Crystal Falls Fire Department remains unresolved. At last week's council meeting, members indicated that the city would no longer be able to pay for its share of fire service.
Olson said that the fire authority committee, which includes representatives of both the city and township of Crystal Falls, will be meeting at least two more times this month to discuss the issue. She added that if the city of Crystal Falls cuts back on funding fire service, then the township will cut back as well.
Mayor Janet Hendrickson noted that the fire department currently has an annual budget of only $120,000, $69,000 of which has already been spent.
"It's totally unrealistic to expect them to operate with only $50,000 for the rest of the year," she said.
Nikki Younk's e-mail address is nyounk@ironmountaindailynews.com.
