Dear City Employees:

As you may have seen from today's newspaper, the latest revenue forecast for 2003 shows the estimated General Fund budget gap may reach $60 million -- $10 million more than the May estimate for 2003.

It's clear that we have to work even harder at setting priorities and getting control of city spending.

Today, my office announced position reductions in the police and fire department budgets.

I realize this is a difficult process for City employees. I want you to know that we are working to minimize layoffs, consult with unions, inform employees early and often about budget issues, and provide assistance to those whose positions may be affected. The Separation Incentive program, which we negotiated with City unions, should help reduce the number of layoffs. In the coming weeks, I will share results of that program with you.

Thank you for your hard work. As the recession continues to affect City resources, your professionalism and dedication to public service are vitally important.

Sincerely,

GREG NICKELS
Mayor