McALESTER, Okla. (AP) A McAlester city official says spending and hiring freezes have been ordered but layoffs may be necessary to deal with a revenue shortfall.
City Manager Susan Monroe says even if the city's work force was cut in half, municipal officials still wouldn't be able to meet bond payments.
McAlester has had problems in recent years maintaining mandated water-quality standards, and customers are still receiving notices this year.
Officials cut about one million dollars before this year's budget of $17.6 million was approved. The budget was based on a higher sales-tax revenue and other factors that haven't materialized.
Officials report that McAlester has about 240 employees and a twice-monthly payroll of about $400,000. The payroll account is overdrawn by about $123,000.
The council also approved a lease agreement with the Federal Aviation Administration for the Automated Flight Service Station at the McAlester Regional Airport.
The FAA's payment will increase from $1,000 to $10,000 per month.