GREENSBORO - For the city, 2009 looks a lot like 2008.
City jobs may be cut. Water rates may go up. But taxes would stay the same.
Interim City Manager Bob Morgan’s $423 million proposed budget would eliminate 19 city jobs and cut merit pay for city staff.
Water rates for residents would increase 6 percent in January, but the property tax rate would stay flat at 63.5 cents.
If the proposed budget is adopted in June, the tax bill on a $200,000 home would be $1,270.
The proposed budget does not account for a potential shortfall in county and state contributions to the city budget — another issue the city staff will have to deal with as the budget process continues.
"We’ve done this with minimum impacts on service levels," Morgan said. "Yet it leaves the organization ready to take advantage of any economic rebound."
The City Council will hold a public hearing on the budget June 2.
Next year’s $423 million proposed budget is $12.4 million — or 2.9 percent — less than what the city will spend this fiscal year.
No city employees would lose their jobs in the position cuts. There are only eight employees in those positions currently. They would be moved to new roles, Morgan said.
The proposed budget would delay issuing new bonds until fall 2010. That means millions of dollars worth of voter-approved projects — from park programs to road work — would be delayed.
That may be an issue that council members debate in the coming weeks, Morgan said.
Morgan’s proposed budget doesn’t address the fact that the county and state may not give Greensboro some funds.
For instance, the county’s proposed budget comes up $400,000 short of the county’s expected contribution to the Greensboro Public Library.
Morgan said the city also faces possible decreases in $19 million worth of state aid — a potentially devastating issue.
"We would have to look at some serious use of reserves and some severe service cuts" if the state aid is cut, Morgan said.
City Council members did not discuss their budget concerns Tuesday night. They will debate budget issues at a work session next week and in June.
Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com
City Council Insider
News and notes from the meeting of the Greensboro City Council.
Manager search
City Council members got a first look at the process that consultant Colin Baenziger will follow to help recruit the new city manager.
Baenziger is in town to meet with city leaders and the public to figure out what kind of leader should replace former City Manager Mitchell Johnson.
Council members debated whether they should slow down the search process so the new council elected in November can hire the new manager. But ultimately council members decided to let the process play out. The goal is to hire a manager at the end of summer.
“We need to go with all deliberate speed and wisdom and insight,” Mayor Yvonne Johnson said.
Science moola
City Council members took the first step toward putting a $20 million bond referendum for the Natural Science Center on the November ballot.
If approved, the money would be used to renovate and upgrade the museum.
Photo Caption: Interim City Manager Bob Morgan at Tuesday's Greensboro City Council meeting.
How you would be affected
How the city would be affected
Possible pitfalls
May 26: The City Council meets to discuss budget and capital improvement program
June 2: Public budget hearing at 5:30 p.m., 300 W. Washington St.
June 16: The council expected to adopt budget
July 1: New fiscal year begins
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