Dayton estimates $20 million budget shortfall for 2010

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By Joanne Huist Smith, Staff Writer Updated 11:43 AM Thursday, August 27, 2009

DAYTON — City leaders plan to bring together local economic experts, business representatives and community folks to help strategically map Dayton’s financial future, clouded now by ongoing revenue shortfalls and a sizeable deficit projected for 2010.

“The magnitude of our challenge is going to be significant,” Dayton City Manager Rashad Young said, adding that estimates indicate a 2010 budget deficit of $15 million to $20 million.

Estimated revenue to the city in 2010 is $152.6 million, which reflects a $6 million drop from 2009 estimates. That loss follows an $11 million decline in 2009 revenue, compared to 2008.

“This is an opportunity to see how we rightsize our city,” Mayor Rhine McLin said. “We have been forced to become lean and mean. When we come out of this, we will be lean and focused.”

The shortfalls could mean employee layoffs and changes in the level of city services, Barbara LaBrier, Dayton’s director of management and budget said.

The City Commission heard the news during a work session on Wednesday, Aug. 26.

City Commissioner Joey Williams said rightsizing involves more than squeaking through another year. The city needs to attract more businesses to increase its income tax base, he said.

Total spending in July was $6.7 million under budget, a factor that has helped the city limp through the first half of 2009, reducing a $6 million deficit to $2 million.

“Spending less is what has kept the city afloat,” Commissioner Matt Joseph said.

Young said the 2009 budget will be balanced by the end of the year. Employee buyouts will be offered from Sept. 8 through Sept. 27. The buyouts, based on years of service and salary, will be similar to those offered in ’08.

“I want people to appreciate that these are incredibly difficult times. I want them to have confidence that we are doing the best we can and that we’re doing what we think is in the best interest of the city of Dayton,” Young said.

He has asked the City Commissioner to define budget priorities. For three years, the focus has been economic development, infrastructure and public safety, with a greater emphasis on police over fire.

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