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Temporary or Short-Term Sudget Cuts <br />The Council could choose to use short-term measures such as leaving employee positions temporarily <br />vacant, reducing overtime, delaying vehicle and equipment purchases, or reducing Staff training and <br />conferences. <br />However, this would have the effect of spreading an increased workload over less Staff, and effectively <br />prohibiting the City from realizing the optimal value of its vehicles and equipment. While this approach <br />may offset the loss of MVHC for 2009, it would not necessarily provide a viable option beyond 2009. In <br />short, it would not be sustainable. <br />Structural or Long-Term Sudget Cuts <br />Finally, the Council could choose structural or long-term measures such as; organizational restructuring <br />that result in the elimination of employee positions, eliminating programs and services, or reducing service <br />levels. <br />This option presents the most viable option for ensuring financial and operational sustainability. It will <br />better equate the public's ability or willingness to pay for services with the actual demand for those <br />services. <br />Potential 2009 Sudget Cuts <br />In recogniton of the expected loss in MVHC in 2009, and possibly beyond, City Staff has compiled a list of <br />potential spending cuts. These cuts are summarized in AttachmentA. Sear in mind, that the proposed cuts <br />were based on the premise that the impact from the loss of MVHC should be borne by each department on a <br />proportionate basis based on the 2009 Sudget. This represents only one of several formulas that could be <br />used. <br />City Staff will be present at the meeting to address any Council inquiries and impacts from any spending <br />cuts. <br />POLICY OBJECTIVE <br />It is recommended that the City publicly acknowledge the expected loss of MVHC and its potential impact. <br />FINANCIAL IMPACTS <br />The City expects to lose $400,000 in MVHC in 2009, and possibly beyond; creating a budget shortfall in <br />the property t�-supported programs. <br />STAFF RECOMMENDATION <br />Not applicable. <br />REQUESTED COUNCIL ACTION <br />City Staff is seeking direction on whether to make cost-cutting adjustments to the 2009 Sudget. <br />Prepared by: Chris Miller, Finance Director <br />Attachments: A: Summary of Potentia12009 Budget Reductions <br />B. Staff Memos <br />Page 2 of 4 <br />