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Denver Post reporter Chris Osher June ...
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Denver Mayor John Hickenlooper today told city employees in an e-mail that his administration faces a $56 million budget gap next year but has crafted a plan to close that potential deficit.

He said that after consulting with employees and asking their feedback, he has decided on the following steps for the city:

  •  About $22.2 million in operational savings by deferring equipment replacement, holding open vacant positions and cutting back on supplies and services.
  •  The use of $12 million in reserve funds in 2009, which will reduce the reserve fund balance from 14 percent of expenditures to 13.5 percent. The city’s goal is to maintain a reserve balance of 15 percent of expenditures.
  •  Holding 2009 merit pay increases to 2.25 percent for all eligible career service and appointed employees rather than freezing wages to come up with $4.5 million in savings.
  •  Working to achieve $4.9 million in savings in concessions from the unions that represent police officers, firefighters and sheriff’s deputies.
  •  Suspending a bonus pay plan that rewards performance to achieve $5.4 million in savings.

    The mayor said that should the economy continue to deteriorate, he will also use furlough days during the months in which employees receive three pay checks or on days adjacent to city holidays.

    “While it is impossible to completely insulate ourselves from national economic forces beyond our control, we are working aggressively and strategically to ensure our regional economy rebounds as quickly as possible,” the mayor said in the letter.

    The mayor said the budget deficit would have been $86 million, slightly 10 percent of the 2009 budget, if departments had not already worked hard to close another $30 million gap during the development of the original 2009 budget.

    Christopher N. Osher: 303-954-1747 or cosher@denverpost.com

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