City Council explores $192K budget shortfall solutions including salary freezes and furloughs

June 07, 2025 | Greenfield City, Monterey County, California


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City Council explores $192K budget shortfall solutions including salary freezes and furloughs
The Greenfield City Council held a budget workshop on June 5, 2025, focusing on potential personnel modifications and financial strategies to address a projected shortfall of $192,000. Council members discussed various options to manage the budget, including salary freezes, furloughs, and the use of fund balance reserves.

One significant proposal involved freezing step increases for employees, which could save approximately $272,000. This option would halt the planned salary raises that vary between 4% and 5% depending on labor groups and positions. Another discussed approach was implementing a work furlough, where employees would take unpaid time off. Estimates suggest that a 10-day furlough could yield savings of around $350,000, although this figure includes both furloughs and salary cuts.

The council also reviewed the city's fund balance, which currently stands at about $10 million. While some members referenced the City of Carmel's approach to managing a $5 million deficit through fund balance, they acknowledged that Greenfield's reserves are significantly larger. However, they emphasized caution in using these reserves to cover operational costs.

Additionally, the council noted that there are no new personnel requests in the budget, with only three funded vacancies remaining from the previous year. The total capital improvement projects (CIP) requested amount to over $6 million, with a small portion funded by the general fund.

As the workshop concluded, council members expressed the need for further discussion on these financial strategies to ensure the city's fiscal health moving forward. The decisions made in the coming weeks will be crucial in shaping Greenfield's budget and addressing the current financial challenges.

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