Downey : Spending Cuts Approved to Offset $2-Million Shortfall
The Downey City Council on Tuesday night approved spending cuts to help offset a recession-related revenue shortfall of $2 million for the year.
The council decided to delay the purchase of new equipment, including two pumper firetrucks, for a saving of about $1 million. The city also will continue its hiring freeze, now covering nearly 30 positions, for a saving of $300,000 this year.
In addition, the city expects to receive a $1.9-million rebate from the state retirement fund to compensate for the decrease in sales tax and other revenues this year, said Lee Powell, assistant city manager. Downey has a general fund budget of $34.5 million.
In a related matter, Mayor Barbara J. Hayden asked that the City Council consider at its Feb. 11 meeting whether the city can save money by abolishing the Police Department and hiring the Sheriff’s Department for law enforcement services.
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