DUBUQUE, Iowa (AP) - A projected budget shortfall has led Dubuque city officials to institute a hiring freeze and contemplate canceling dozens of improvement projects.
City officials have projected a 2014 shortfall of more than $1.43 million for the city’s operating fund, as well as a deficit of $1.47 million in its capital improvement fund, the Dubuque Telegraph Herald reported (https://bit.ly/1hlxzYV ).
On Monday, the City Council will consider a number capital project cuts proposed by City Manager Mike Van Milligen.
Those proposed cuts don’t include long-term projects such as the Bee Branch Watershed Flood Mitigation effort, he said.
“It only affects the general fund expenditures,” Van Milligen said.
Decreased revenue from a nearby casino and race track, as well as a drop in local sales tax revenue, is mostly to blame for the budget shortfall, he said.
He also noted other unexpected costs, including a harsh winter that has drained the city’s road salt supply. Replenishing the supply for next season could cost the city $180,000.
The city’s hiring freeze will carry over into fiscal year 2015, which begins July 1. Van Milligen said it won’t prevent city officials from filling vacancies in public safety positions, such as police officers and emergency communications center workers.
Projects on the chopping block include more than $200,000 in improvements to Eagle Point Park, a $108,000 Port of Dubuque outdoor plaza and various additions to the Mystique Community Ice Center.
The council is expected to make final decisions April 7 when it passes a budget amendment.
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Information from: Telegraph Herald, https://www.thonline.com
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