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Cash-strapped Huntington fires 9 workers

Updike

Nine more Huntington city workers lost their jobs this week as the city continues to cope with dwindling revenue.

Mayor Steve Updike told the workers the news Thursday afternoon. The cuts are in addition to 11 employees, including six firefighters, who were laid off in November in an effort to continue shaving millions from the city’s budget.

Affected union employees worked in the sewer, water and landfill departments. Two clerks worked in the engineer’s office and the water plant, Updike said.

He asked residents to work with the city as officials work through the community’s financial problems.

In all, the city is down 21 employees, saving about $440,000.

Updike has also frozen wages for the second year, including no wage increases for years of service, and has increased employee health insurance premiums, among other steps.

Beginning in March, the city will offer garbage pickup the first and third weeks of the month instead of weekly. And the city landfill will no longer be open Saturdays, he said.

Updike said his administration has been trimming the city’s budget since he took office in 2008 to prepare for new caps on property taxes that took effect in 2009.

The city lost about $550,000 in property tax revenue last year and will receive $950,000 less this year.

But Updike said the recession, assessed-value appeals and delinquent property taxes have blown a hole in the city’s budget.

In 2008, the city worked with a $15.5 million budget, he said, but is working to meet a $10 million budget this year.

According to the Indiana Department of Local Government Finance, the city had an approved $13 million budget in 2009 and again this year.

The city general fund should receive $6.7 million in property tax revenue this year, Updike said, but city officials anticipate tax collections to be much less, based on last year’s appeals and delinquent taxpayers.

In 2009, 13 percent of taxes owed to the city were not paid. That rate was about 9 percent countywide. Both are higher delinquency rates than past years, according to Huntington County Treasurer Brenda Hamilton.

“It’s a big chunk. It kills cities, towns and counties when you don’t get that money. You either have to give up services, or you have to give up people. And we’ve done both,” Updike said.

Updike said more city workers could lose their jobs this summer if spring property taxes lag behind.

He said it’s likely that city parks will not open this summer because he the city won’t have the staff to run them.

Updike said the City Council would not create a stormwater fee or a garbage fee to increase revenue. He said the council also would not approve an annexation, which could have generated more revenue, and declined to seek emergency relief from the state.

Council wants more cuts

But council members said they want the city to continue trimming before they consider raising fees or taxes or seek help from the state.

Councilman Steve McIntyre said the citizen task force he formed should have recommendations in the next few weeks on how the city could save money and meet its new, lower budget. Small changes like eliminating take-home cars for city employees can add up, he said.

Some council members are also concerned that Updike hasn’t implemented previously suggested cuts, McIntyre said.

“The general public wants to know that the administration made a good-faith effort to make cuts before they dip into their pockets to help him out,” he said.

aiacone@jg.net