Declining Revenue Means No Raises For MoCity Employees This Year
By: Jamie Mock on Tue, Mar 16, 2010
A recent confidential e-mail from City Manager Frank Simpson to all city employees paints a dire picture of the city’s budget and warns of a moratorium on all travel and the unlikelihood of raises in 2010.
The e-mail, sent by Simpson last week, told employees that while the city is “faring much better” during the current economic climate, the city is starting to see greater negative impacts on the city’s budget then were projected last year.
According to Simpson, city revenues are lower than expected and expenditures are greater than anticipated. Simpson asked all employees to reduce any discretionary spending that does not affect city service. He said that all departments will soon undergo a review of “service delivery” to identify the core service provided by each department.
“No department should be making expenditures that is for something new or that we aren’t currently doing unless it can be demonstrated that it will save money for this year’s and next year’s budget,” wrote Simpson.
When asked by FortBendNow about the issue, Director of Finance Wes Vela painted a different picture regarding expenditures and sales tax revenue.
“Missouri City is recognized nationally for our prudent fiscal management and in this tough economic climate, although revenues are slightly lower than projected, expenditures are not a challenge at this time,” said Vela.
Although City Council earlier this month dropped a proposed Homestead Exemption from the upcoming May 8 Special Election ballot due to decreases in sales tax revenue, Vela told FortBendNow that “in the past 6 months there has been a gradual improvement in sales tax collections”
Earlier this month, City Manager Frank Simpson told council that the city saw a decrease of about $70,000 in sales tax revenue in January and February. The Homestead Exemption was dropped to fund an additional five to seven police officers – employees Simpson said earlier the city would not be able to afford should sales tax revenues keep dropping.
In the e-mail to employees, Simpson said no new travel requests will be approved until next year’s budget has been completed. Department heads were asked to review currently approved travel plans and possibly cancel them if lost registration fees amount to less than other costs that have not yet been incurred.
Trips that cost the city nothing other than the employee’s time will be considered on a case-by-case basis.
According to the e-mail, performance evaluations will be completed this March, but there are currently no plans to give any employees a raise.
“Being completely honest, I do not anticipate the current economy and thus the City’s financial capabilities to improve to a level that would allow the city to consider salary adjustments during 2010,” wrote Simpson. “I would be pleased to be wrong about this.”
Vela confirmed that the city is not considering raises for the current year.
“The city is not planning to make salary adjustments in 2010, but management is cognizant of the exemplary work done by staff and the needs of our citizens and as such is poised to be proactive on this issue in the event economic circumstances change,” said Vela.