Artesia News

City experiences budget crisis

A drop in sales tax revenue, coupled with State borrowing of city funds, has left an approximately $823,000 hole in the city budget.

City Manager Maria Dadian has advised that "there will be great changes in how the City does its business ... and it will be reflected in the next budget."

A preliminary budget that was reviewed on April 26 was meant to raise the level of awareness to City staff and the general public of the gravity of the challenges the City faces.

City Council will be considering a number of options to balance the budget.

This includes staff reduction, salary/benefit reduction, continued furloughs, cost recovery programs (i.e. street light contributions, new business license category, parking meters, etc.), reconfiguring city-owned property, and reviewing consultant contract obligations.

Last year, the City used its emergency reserves to cover an approximately $1 million deficit.