DENVER—Denver Mayor John Hickenlooper says his administration is facing a $56 million budget gap next year but has a plan to close it that includes cutting costs and workers’ bonuses.
Hickenlooper told city employees about the projected shortfall in an e-mail Friday. He cited decreased revenues resulting from the national economic downturn.
The plan to address the gap includes deferring equipment replacement, holding open vacant positions and cutting back on supplies and services, which is expected to result in $22.2 million in savings.
Hickenlooper says the city also will work to achieve $4.9 million in savings in concessions from the unions that represent police officers, firefighters and sheriff’s deputies.
The plan also includes suspending a bonus pay plan and using $12 million in reserve funds.
