This year's city budget projections were low – but the actuals were even lower.
Killeen City Manager Connie Green recommended $4.2 million in budget cuts to the Killeen City Council on Tuesday to counter the expected $2 million to $3 million difference in revenue earnings for the remainder of the year.
In the next two weeks, the council will hear details of a 5 percent cut of all city department operating expenses.
Green said that there will be no personnel layoffs included in the budget cuts.
The council will review the cuts during special budget workshop sessions in the coming weeks, with a potential approval of the budget cuts coming in an ordinance in the June 23 meeting.
"We're going to ask you to cut the budget to get us back on track," Green said. "I've asked every department to decrease their maintenance, supplies and repairs five percent. This does not include personnel. If we're able to do that, our reserves wouldn't have to be depleted.
The second quarter earnings report offered little comfort for the city, which had been earning more than a 4 percent return on its investments. That number has dropped to 0.8 percent.
"You could probably dig a hole and put your money in the ground and have a better rate at a less risk," Green said. "All of our leading economic indicators are down. Building activities are down." Source: Killeen Daily Herald
This is only probably going to get worse before it gets better.