HUNTINGTON -- Huntington Mayor Kim Wolfe will close City Hall on Fridays, reduce city employees pay by 10 percent and eliminate seven positions, mainly through attrition, beginning in July in an effort to stay within a reduced city budget.

The changes, which Wolfe announced Friday, are expected to save the city $425,000. That's enough to balance the city's $39.3 million budget for the 2010-2011 fiscal year, which begins July 1.

Beginning July 5, offices in City Hall will be open from 7 a.m. to 6 p.m. Monday through Thursday. Employees in the city's Department of Development and Planning, who are not funded out of the city's general fund, will work four 10-hour work days.

The reduced workweek, extended workdays and reduction in pay will affect 125 administrative and Public Works employees that are employed through the city's general fund revenue.

"We have a budget deficit and we have to make decisions that hopefully will not diminish services and that is less painful for the employees," Wolfe said. "With the combination of working with our department heads and their workers, we feel like this is the most efficient, fair way to do it."

Brandi Jacobs-Jones, director of Administration and Finance, said Public Works employees might be asked to work additional hours during emergency situations, such as inclement weather. Police, fire, sanitation and trash departments will continue their current schedules.

The elimination of seven positions comes from the city's Motor Pool as well as the Human Resources, Finance, and Inspection and Compliance divisions.

Along with the reductions for City Hall and its employees, Wolfe also announced that the city will be unable to make contributions to several entities at previous funding levels.

Reduction in funding is planned for the Huntington Cabell-Wayne Animal Shelter, Harris Riverfront Park, Cabell County EMS and Paul Ambrose Trail for Health (PATH).

Wolfe said the city implemented a freeze on spending and left vacancies unfilled earlier in the year to make up for the sharp decline in revenue. The city's loss of revenue, Wolfe said, comes from the effects of the economic downturn.

With little construction going on in the city, Wolfe said there was a loss of $1.8 million in revenue from the construction component of the city's Business and Occupation Tax. As unemployment increased, Wolfe said, the city collected $300,000 less from the weekly $3 user fee.

Finance Director Deron Runyon said the reductions being made to balance the budget are not expected to be a long-term fix. The changes, Runyon said, allow the city to get through the budget year.

Runyon said the city is focused on collecting past-due municipal service and refuse fees as well as B&O taxes.

"We're looking for any additional revenue sources that might be out there," Runyon said.

The City Council is working to come up with a comprehensive tax package that aims to overhaul the city's tax structure. Council has put a proposed occupation tax on the back burner and could vote on a 1 percent sales tax by the end of the month.

Council Chairman Jim Insco has said a "task force" consisting of himself and Councilmen Nate Randolph and Steve Williams will be formed in the near future to begin looking at issues surrounding the occupation tax, which was proposed by Wolfe. Those include how the city should formulate caps on the tax, the impact it would have on the business climate and what types of businesses would be exempt, he said.

Insco said the task force will decide whether to move forward with an occupation tax by November. If the decision is to proceed and there are enough votes for an occupation tax, it likely will be coupled with reductions in the business and occupation tax, he has said.

The mayor is open to looking for different solutions to the city's revenue issues.

"As long as the tax is not regressive and it's not impeding business, we'll be willing to work with council," Wolfe said. "They want the same things we do -- they understand we're in a challenging time."

File photo/The Herald-Dispatch

Huntington City Hall.