Gig Harbor officials announced Friday that they are cutting 10 city employees to make ends meet next year, reducing the 99-person staff by about 10 percent.
The decision came after city officials determined earlier this week that they wouldn’t be able to balance their 2009 budget with the decline in development revenues this year, Mayor Chuck Hunter said Friday.
“With the events of the past few weeks, the housing industry is shut down at this point,” Hunter said. “Last week we worked and worked and worked with the numbers, and by Monday we determined we weren’t going to be able to do it without doing layoffs.”
The laid-off employees will work 90 more days, as provided in their contracts, Hunter said. They were selected from a range of city departments, excluding police.
The city did cut one new police officer position it had budgeted for mid-2009, Hunter said.
“The cuts are across the board,” Hunter said. “We’ve tried our best to keep our Police Department intact and on the job.”
The city’s general fund budget was about $10 million in 2008, but officials are budgeting only $8.4 million for 2009 – the same level as back in 2006, Hunter said.
Before resorting to layoffs this week, officials had already cut budget items like supplies, vehicles, overtime pay and travel expenses, he said.
“In the next 30 to 60 days, we don’t want to make any more cuts,” Hunter said, “But I think depending on this economy, I don’t think anyone can guess.”
The maritime city is not the only Pierce County municipality watching revenues spiral downward. Puyallup, for example, anticipates a decline in traffic impact fees from $14.1 million in 2008, to $3.2 million in 2009 and just $1.5 million in 2010.
Gig Harbor City Councilman Derek Young said he foresees some projects being delayed or completed in phases due to the budget crisis.
Plans to rebuild 38th Street will probably be pushed back, Young said. City engineers estimate that project will cost at least $10 million.
Other projects that are being cut are proposed pier extensions and an expansion of the city dock, he said.
“Essentially right now we’re cutting down to the ‘gotta dos,’ not the ‘it’d be sort of nice’ things,” Young said. “The major infrastructure improvements that have to be done will go forward.”
Young added that the layoffs were a last resort for city officials. He said the loss of the employees is a big blow to their families and to the city government.
“There are people attached to these jobs,” Young said. “No matter what, you’re losing a part of your team, and that’s not easy.”
Melissa Santos: 253-552-7058
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