City Implements Current Budget Cutbacks

Published by The Bee News

April 14, 2020

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-Budget Cuts Underway for Fiscal Year 2021-

KINGMAN, Ariz. – The City of Kingman is implementing budget cuts for fiscal year 2021, that may include leaving certain positions in city government unfilled. As positions become open, priority and budgeting will be reviewed regarding re-filling those positions. As of now, if positions aren’t filled, or are in the process of being filled through the City’s Human Resources Department, those will only be filled on a case-by-case basis.

“We are going to continue to try and provide the same level of service to our community, but we have to plan ahead for what looks like a down-turn in revenues that help the city provide those services,” Kingman City Manager Ron Foggin said. “It’s my priority to make sure everyone who is employed at the city right now, continues to stay employed at the city, but we’re going to have to cut projects and some internal building remodels in order to do that,” he said.

Some examples of projects and other purchases being cut are:

  1. Fire truck
  2. Permitting and licensing software replacement
  3. Dispatch and fire station alerting systems
  4.        Internal building remodels – fire administration, city complex conference room, Powerhouse          Visitor Center conference room, and community development

No department received a base-line percentage cut, however, as the city is in the middle of currently building its 2021 budget, department budgets were heavily reviewed again regarding the recently projected downturn in revenues the city faces. The Joint Legislative Budget Committee (JLBC) staff made the following predictions for Arizona’s economy:

  • Through at least fiscal year 2021, the state revenue forecast will be linked to the future of the COVID-19 pandemic.
  • The COVID pandemic may reduce 4th quarter (April, May, June) General Fund revenues by 24%.
  • JLBC is projecting a $1.1 billion shortfall by the end of fiscal year 2021 (next fiscal year). This estimate could be off by $500 million in either direction.

Initial projections from the Arizona State Legislature Finance Committee, that met last week, are currently showing a reduction in state shared revenues that cities collect from different funding sources like sales tax and gas tax; however, the committee is hoping to have more reliable data this summer.

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