City of McKinney takes measures to contend with budget deficit

For Immediate Release

For More Information, Please Call:
Anna Folmnsbee
Communications and Media Manager
972-547-7525
afolmnsb@mckinneytexas.org

City of McKinney takes measures to contend with budget deficit
City Manager outlines steps to make up estimated $5.1 million difference

McKINNEY, TEXAS (Jan. 16, 2009) - The City of McKinney announced today that the downturn in the economy has adversely affected revenue. Actual revenues from sales tax, permits, licenses and interest earnings are estimated to be $5.1 million less than budgeted for this fiscal year.

City Manager Frank Ragan has outlined several measures to balance the budget against the decline in revenues. However, the city does not anticipate any staff layoffs.

“It is necessary for us to cut expenses to balance the budget. The most important thing is to explore every measure possible in order to avoid layoffs and avoid reductions in the most critical services to our citizens. I think the plan we are putting into place does just that,”said Ragan.

Effective immediately, the city will implement the following measures to balance the budget:

- Freeze or delay hiring of newly budgeted and vacant positions.
- Review the need for planned consultant studies, resulting in possible delays or deferment of some.
-  Reduce or eliminate overtime by 25 percent from the original approved budget.
-  Reduce travel and training by a minimum of 10 percent from the original budget.

City staff will continue to evaluate daily operations and seek ways to save.

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