City to cut $1M

Winter Park's city manager took a machete to the city budget at Monday's meeting, showing city commissioners what he needs to do to slash more than $1 million from next year's budget.

Raising the millage rate again peppered the discussion, though the recommendation was to keep the current millage rate of 4.3858 mills. Hiking it to a possible 4.5225 would only be possible through a supermajority vote from the City Commission.

Dragging down the budget, pension plans have slowly risen in cost to the city, as plans that used to pay for themselves through investments now cost the city a large portion of its pension payroll.

"Back in 2002 our contribution to the plan was zero," Knight said. "We're now contributing slightly over 25 percent of payroll to keep those plans actuarially sound."

To battle the $2.7 million the city pays in combined police and fire pensions, the city has contracted an actuary to find creative ways to change the pension plans to save money.

"There are seven change scenarios that they're looking at … changes to retirement age, new plans for new employees," Knight said.

All of those changes would be designed to try to save the city $270,000 in next year's budget.

Commissioner Carolyn Cooper said the city might want to consider freezing talks about pension plans.

"I was wondering if there was any wisdom in suspension of budget negotiations," she said.

Knight said the city should seek a new deal as soon as possible.

In the rush to a leaner budget, the city has also gotten more efficient, cutting back on some employee perks while gaining energy efficiency.

"Last year eliminated take-home vehicles and switched to LED traffic lights," Knight said. "We've saved a tremendous amount of energy."

Hiring freezes and unfilled positions will save another $80,000, he said.

Knight said he thinks the city is safely on track to save money and meet its budget. Speaking about city investments and estimates about future revenue, he was optimistic.

"The good news is if we're wrong, we're going to be back in the same place next year," Knight said.