Thursday, December 13, 2001
Hamilton OKs 2002 budget
Vacant jobs won't be filled; $1M deficit projected for 2003
By Steve Kemme
The Cincinnati Enquirer
HAMILTON City Council on Wednesday approved a balanced budget for 2002, but anticipates tough times ahead.
Next year's general fund budget of $37.4 million, approved by a 6-0 vote, is about the same as this year's.
Hamilton City Manager Steve Sorrell said he and his staff averted an anticipated $500,000 deficit at the end of this year primarily by not filling the positions of people who retired or resigned.
But there is a projected $1 million deficit at the end of 2002, partly because of state and federal funding cutbacks. As a result, he said, Hamilton will have a more difficult time balancing the 2003 budget than it had balancing next year's.
We'll continue to tighten our belts and continue to look at ways to enhance revenue streams, Mr. Sorrell said.
He doesn't know how many additional vacant positions in 2002 will have to be eliminated next year.
Mayor Adolf Olivas, who reluctantly voted for the budget Wednesday, voiced deep concern about the city's economic future.
This is not going to be a pretty picture a year from now, he said.
The city's $3 million carry-over for 2002 from this year is a small rainy day fund for a city the size of Hamilton, Mr. Olivas said. A serious emergency could deplete that fund in short order, he said.
Hamilton can't continue balancing the budget by not filling vacancies because city services eventually will suffer, he said. But he conceded that under the circumstances, it's about as good a budget as we can get.
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