The City of Norman implemented a "smart" hiring freeze last week amid persistent revenue shortfalls, although City Manager Steve Lewis said the move wouldn't affect fire and police positions funded through 2008's half-cent public safety sales tax.
City jobs deemed "mission critical" -- like a police officer or city manager -- won't be affected by the smart hiring freeze, Lewis said.
He said the loss of mission critical positions would be disruptive to the business of running the city, describing them as "one-position" jobs that can't be changed, eliminated or reassigned.
Lewis said the city currently employs about 800 full-time workers, who lumped together get paid just a hair under $50 million each year when benefits are included. He said employee compensation will account for 67 percent of general fund spending for the fiscal year ending June 30.
City of Norman Finance Director Anthony Francisco said no employees have been laid off despite 11 months of declining sales tax revenue. When asked if any layoffs were coming, he said there were none planned "at this time."
Lewis also said the city has estimated its general fund will face a budget shortfall of $1.5 million for the fiscal year ending June 30.
"The City's Management Team has identified approximately $1 million in budgetary savings for this fiscal year in their operating accounts and these savings will essentially be held frozen in order to help cover the shortfall," he said, adding that essential services won't be affected by the looming cuts. "We are implementing this process in order to avoid taking funds from our general fund balance or from emergency reserves."
Francisco said the city has realized savings from lower fuel costs -- which he said will likely carry over into the next fiscal year beginning July 1 -- and also plans to trim back on consultant fees related to the Porter Avenue corridor revitalization project and the city's Storm Water Master Plan development.
How city staff will reconcile the remaining $500,000 shortfall remains to be seen, Francisco said.
The city already has started working on the 2011 fiscal year budget, which begins July 1, Lewis said. He said the city plans to save money by continuing the smart hiring freeze and possibly consolidating activities, including working more closely with Cleveland County where applicable.
Francisco said the new budget will be complete by early June, adding that city department heads are currently looking at ways to save money during the next fiscal year.
Norman isn't alone facing shrinking revenues and tough decisions.
Earlier in the week, Oklahoma City revealed it would eliminate jobs and implement other cost-saving measures. The capital city has endured revenue shortfalls for nearly a year and officials there indicate further, deeper cuts are likely.
In Tulsa, more than 100 police officers were laid off as the state's second-largest city grapples with a budget shortfall of about $11 million. Firefighters in the city agreed last week to a 5.2 percent pay cut, among other concessions, to save 147 jobs and 30 civilian employees have been let go.
Andrew Knittle 366-3540 aknittle@normantranscript.com
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