MAYOR HOUSTON TO REDUCE CITY SPENDING, BY CREATING RESERVE FUNDS

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Ernie Slottag 789-2235

In an effort to reduce spending, Mayor J. Michael Houston today said he will introduce a series of budgetary reserves within the Corporate Fund. These reserves will reduce funds which will be available for spending and will offer much greater control over the city’s operating budget. This effort will involve the Corporate Fund, which is most closely associated with services provided by the Police Department, Fire Department and portions of the Public Works Department.

“The Office of Budget and Management is currently in the process of reviewing each operating area within City government and identifying those dollars which may be reduced with a minimal impact on the delivery of City services,” said Mayor Houston. “An amount of money yet to be determined will be transferred from the operating budgets of those departments into the newly created reserve accounts. The reserve amounts will be closely monitored by the Office of the Mayor and Office of Budget and Management.”

Certain spending categories will be excluded from reserve reductions. Those include: pension payments, debt service payments, Lincoln Library support and other areas in which the City is contractually obligated.

“The City will continue to monitor revenues closely,” Houston added. “I believe the establishment of reserves will provide greatly enhanced management oversight of our city budget. It is my intention to report the balance of the reserve accounts on a monthly basis to the City Council and the public. While departmental reserves are expected to change as I identify my spending priorities, I intend to keep the overall level of cuts consistent across the Corporate Fund.”