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City cuts $132,000

The one-man, part-time natural gas sales department will be eliminated under the city of Perham's revised 2009 budget.

A total of $132,000 in cuts were approved by the city council March 9.

The only "people" cuts are the elimination of one summer, part-time employee for the parks, saving $4,000; and public works departments; and the elimination of the natural gas position. Dave Neisen holds the gas sales position, at an annual cost to the city of $9,000.

The elimination of the natural gas sales position will be efffective May 1.

Neisen will still hold a dual position with the city, as building inspector and zoning administrator.

The largest single cut will be the delay of a scheduled $45,000 overlay of the city's bike and recreational path--which was scheduled for summer of 2009.

The parks department will also face a $17,000 reduction in city allocation for playground equipment, benches and other items.

Fees for families in the summer recreation program will likely see higher fees for the fvarious programs, as the city will cut its contribution by $2,000.

The Perham Area Chamber of Commerce will receive $1,000 less from the city--bringing the annual municipal contribution to $6,350.

The Economic Development Authority will be cut by $5,000.

A current administrative contingency fund, of $35,000, intended to be a reserve for unanticipated expenses, will be reduced by $15,0000-- to $20,000.

The cuts ion the 2009 budget were a response to an anticipated $82,036 in statte aid--as the state budgert is anticipating a more than $4 billion deficit, by some estimates.

The city will be facing even more intense cuts in 2010, when state aid to Perham is expected to be cut by $171,306.

City Manager Klemm has already identified $162,675 in potential cuts for 2010--through they won't be acted on until the budget process later this year.