While initial estimates indicated the budget deficit for this year to be about $1.6 million and the projected deficit for next year to be about $2.9 million, continued decreases in revenue has caused the city's finance director to recalculate its financial state.
Results released this month show a deficit of $2.8 million for this year and $5.7 million for the next fiscal year beginning in July.
City officials cited decreases in hotel and sales taxes in addition to interest income and Conference Center revenues as some of the problems.
Cuts for department supplies, services, training, travel and overtime as well as the cancellation of the city's Fourth of July display have been suggested as ways to deal with this year's deficit.
A selective hiring freeze has also been enacted.
City Manager Fred Meurer will explain the city's deficit and the possible solutions to the problem during the Thursday neighborhood budget forum in the City Council Chamber, 580 Pacific St., at 7 p.m., city officials said.
Additional information about the city's budget is available online at http://www.monterey.org/budget/budgetnews/html.
