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Published on: 5/23/2008
Last Visited: 5/24/2008
City Manager Bob Gutierrez will present the recommendations Tuesday to the City Council.
Like many cities, Moreno Valley is experiencing a budget deficit created by the slowing economy and the slumping housing market.After five years of double-digit growth, revenues are stagnating, leaving Moreno Valley with a $7.1 million deficit in the 2008-09 fiscal year that begins July 1.
The city is expected to end the 2007-08 fiscal year with $1.4 million in unexpended funds, thanks in part to a number of cost-saving measures enacted earlier this year, including the elimination of temporary and contract employee positions and not filling most vacant full-time positions.
The unexpended funds will help close the 2008-09 budget deficit.Gutierrez also is recommending tapping $3 million in reserves to help eliminate the shortfall.