“Declining revenues forced the CNMI government to make a few hard choices. These hard choices sent shockwaves to all three branches of government, municipal governments, and the private sector,” he said.
The mayor added that the necessity of making adjustments was perhaps the best option for averting a real disaster.
After restoring the government biweekly work schedule to 80 hours and easing cost-cutting measures in late fiscal year 2019, he said, the government implemented cost-cutting measures in the second quarter of fiscal year 2020.
In March 2020, the biweekly work schedule returned to 64 hours.
“The most painful measure followed in May 2020, when many government employees were terminated or furloughed, a very drastic and necessary action as government revenue generation and collection took a steep nosedive,” he said.
“Fiscal year 2020 closed with a glimmer of hope of recovery in the near term.”
Saipan Mayor David M. Apatang delivers his remarks during the recent groundbreaking ceremony for the new animal shelter in As Lito. Photo by K-Andrea Evarose S. Limol
But Covid-19 spread like wildfire and affected every place on earth, he said.
“We saw time stand still. The municipality of Saipan lost employees after a month and a half of the government shutting down,” the mayor said.
The initial cut to staffing consisted of 32 employees who were terminated from employment, he said.
“Financial support from the federal government that became available late in the second quarter saved jobs that could have been eliminated had no federal help become available,” he said.
“Like any other agency in the government and private sector, the mayor’s office is learning to adjust on a lean budget since revenue generation and collection became a grave concern even before the beginning of fiscal year 2020.”
Funding
The Saipan mayor’s office reported that 72% of its full-time equivalent (employee) or FTE funding source came from the Coronavirus Aid, Relief, and Economic Security Act, 22% from the general fund, and 6% from Saipan Local Law 21-10.
Following the across-the-board 48% cut in the government’s fiscal year 2020 budget, the CNMI government allocated $1,503,762 for the Saipan mayor’s office.
Prior to the cut, the mayor’s office had a $2,900,971 projected budget, with nearly $2.2 million going towards personnel, $55,000 to utilities, and over $647,000 to other costs.
The 48% reduction resulted in a nearly $1.4 million budget deficit for the office, including a little over $1 million in cuts to personnel costs and over $26,000 in cuts to utilities,
A revision of the budget resulted in over $1.1 million for personnel, roughly $28,500 for utilities, and more than $335,000 for other costs.
FY 2020 revenues for the office amounted to $3,493,520, with the majority of it coming from Saipan and Northern Islands Legislative Delegation appropriations.
Of its total revenue $900,000 was appropriated from the delegation; $232,706 from a U.S. Department of the Interior-Office of Insular Affairs technical assistance program grant; $254,913 from the OIA Capital Improvement Project funding; $500,000 from the CARES Act; $44,855 from performing marriages per P.L. 20-53; $33,245 from identification card applications as per S.L.L. 13-16; $11,239 from the dog control program; and $12,800 from bingo as per S.L.L. 20-16.
FY 2020 expenditures for the office totaled $2,724,652, mainly towards personnel and fringe benefits of $1,656,189.
Other expenditures included $523,898 in contractual costs; $296,228 for supplies; $126,704 for equipment; $45,509 for construction costs; $11,255 for travel expenses; and $64,869 for other costs.
Progress
Sixty-one percent of its employees work in operations, 25% in administrative roles, 10% in the Dog Control Program, and 4% focus on the home/building numbering project.
The Saipan Mayor’s Office was temporarily closed to the public following the governor’s emergency response to the Covid-19 pandemic in March of this year.
The office reopened in mid-May and resumed its regular daily operations, providing such services as receiving and processing resident identification card applications; performing marriages; naming and addressing streets; field operations; the dog control program; and the student exchange program.
As the coronavirus pandemic persists and fiscal year 2021 started off with much uncertainty, the mayor’s office anticipates declining government revenue generation and collections, as well as a very slow-paced resumption of the island economy, particularly in visitor arrivals and activities.
This new fiscal year, the mayor’s office continues to look forward to the completion of the new multifunctional animal shelter, seeking funding through grants for spay and neuter clinics, finalizing the sister-city agreement with the Katori City mayor’s office in Japan, creating an informative booklet that covers the Japanese monuments and historical sites on Saipan, and proposing amendments to increase fees for marriages performed outside the vicinity of the mayor’s office.
Other goals of the mayor’s office include promulgating regulations to assess fees for earthmoving, removal of scrap metal and junk cars.
It is also working to develop a village demarcation map that will accurately identify the boundaries separating abutting villages, a component of the ongoing Saipan street naming and addressing project.
Moreover, the mayor’s office intends to propose amendments to the enabling legislation to expand the mayor’s responsibilities to include controlling street parking in the villages.
Fees from this particular venture would go towards maintaining the villages and keeping roadsides clean and clear of vegetation.
The office plans to continue coordinating with other government agencies to identify public rights-of-way as well as proposing amendments to increase fees for the Saipan and Northern Islands resident identification cards.
The mission of the Office of the Mayor of Saipan is to “provide a municipal service that ensures a safe and healthy environment, enhance the standard of living, and preserve the cultural heritage of its citizens through responsible stewardship and cost-effective management of its resources.”
For more information, contact the Office of the Mayor of Saipan at saipanmayor@mos.gov.mp and/or 234-6208, or visit its office in Oleai.
