Looking to close a projected budget deficit of a little more than $1 million for the current fiscal year, Hanford is looking to cut more expenses.

The cuts may come in many forms, ranging from putting a freeze on recruitment for some positions as well as travel and training to eliminating contributions to community organizations.

At least, that's what City Manager Gary Misenhimer is proposing.

Hanford was already facing a general fund deficit of about $850,000 at the start of this fiscal year, but the city filled the gap with reserves. According to the mid-year budget analysis presented last week by Misenhimer to the City Council, Hanford is projected to face a revenue shortfall of about $1.05 million by the end of the fiscal year.

That's $1 million in addition to the existing deficit. The good news is that the city's belt-tightening is expected to save $320,800 by June 30. The bad news is that the savings is not nearly enough to make up for the estimated revenue reduction, Misenhimer said.

"If we did nothing, we'd end up with a deficit of $1.8 million in this year's budget," Misenhimer said. "What we're proposing is to bring us back close to at least where we started the year. Even with those changes, you need to remember that we're still in the year with a $850,000 hole."

As part of the solutions, Misenhimer is proposing to freeze two vacant police officer positions and one vacant street maintenance worker position. The city has already reorganized the community development department by permanently assigning the department head duty to one of the deputy city managers.

While lifting the general fund burden for public works budget by $129,300 through a different pot of money, Misenhimer also proposes to reduce miscellaneous City Council expenses as well as eliminate contributions to community organizations totaling $20,000. He also wants to reduce staff training and the travel budget by nearly $50,000.

The city is expected to fill the remaining deficit amount through anticipated additional revenues, such as through the sale of a city-owned property at Campus Drive and Seventh Street, reimbursement of fire impact fees and police service revenues earned by providing security at two highly controversial public meetings held by the county last year.

These midyear budget adjustments are expected to be considered for adoption at next Tuesday's council meeting.

Next year, the city is facing $1.7 million budget shortfall, which could prompt more belt-tightening, Misenhimer said. The city will face a discussion in the near future to evaluate whether cost-saving measures, such as furloughs and layoffs, will be necessary to keep the city finances afloat next year, he said.

The reporter can be reached at 583-2429. To comment on this story, go to www.HanfordSentinel.com.

(Jan. 29, 2010)