City planning to spend half of its general fund reserves, make another round of cuts to staff, to balance its budget

Continuing what appears to be a downward spiral the City Council in Half Moon Bay will consider further cuts in its staff, including the police department, in addition to draining its general fund cash reserves by about half.

The City faces a shortfall of about $1.3 million for this fiscal year, after taking into account prior cuts.

Click here for the budget analysis by city staff.

Most of that money to plug the shortfall will come from the City’s general fund reserves, which will be reduced by $1.2 million leaving $1.5 million.

The personnel cuts and reductions will save only $75,000 toward balancing this year’s budget (since the City’s fiscal year ends in June) but is projected to cut $900,000 from the next year’s budget, in 2010-2011. (The hope appears to be that this large reduction in personnel costs next year will slow the drain on the dwindling general fund cash reserves.)

The specific cuts to personnel as listed by city staff are:

The City Council meets tonight at 7:30 in the Ted Adcock Center off Kelly Avenue. The budget cuts are scheduled for item #9, the final item on the agenda.

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