ORANGE BEACH, Ala. — With recent layoffs in Orange Beach came quizzical residents and city employees, and last week’s council meeting turned into a forum for wondering minds to get answers.

The community gathered to hear the city’s plan to pull themselves out of a $3 million deficit and to hear their reasoning as to why positions were eliminated and employees were laid off.

“There is no rulebook, no guidebook when you’re doing this type of thing,” Mayor Tony Kennon said.

Many have seen the shortfall numbers of the 2008 budget and how the city landed in the red. But 2009 appears to be brighter, or blacker, and Kennon is determined to have a surplus at the end of next year.

Next year’s budget projection is $23,370,500 — 20 percent less than last year’s hopes.

With a 10 percent statutory reduction, a safety net that’s required by state law to eliminate overspending, $2,285,750 is deducted leaving $21,084,750 in the account.

Expenses for 2009 have been managed to $20,650,395 allowing an excess of $434,355.

“You can see we are working from a difficult position,” Kennon said of the need to reduce the workforce. “We don’t have a clue what to expect from the economy. Prior to the election we saw one economy and today it is a totally different economy.

“The process was more about who we could afford to keep to provide the 98 percent of services we are still going to offer. We had to get to a lean number of employees, a sustainable number of employees, to provide the services we have.”

There was pay reduction across the board for some employees according to Kennon, and Councilwoman Pattiesue Carranza explained that those employees are now not only working for less but are working harder.

The council assured the public that no one was let-go based on the person filling the position, but instead the position itself and if it was necessary.

Department restructuring has been inevitable with the reduction of work force, and Kennon said every department has experienced changes, and the city is currently instituting the new plans.

The Street Department and Landscaping has taken over the Sportsplex and Golf Center. The Engineering and Community Development departments have merged. Hours at the Recreation Center will be reduced to help lower operation expenses during hours that aren’t busy enough to sustain the cost.

Employees can no longer take vehicles home; college tuition reimbursement has been suspended; there will be no new uniforms; and no purchases of capital equipment costing more than $7,500 are all major expenses that have been reduced according to Councilwoman Joni Blalock. The city has evaluated to the last cent and has even eliminated color printing.

One resident asked why the council did not reduce their pay to save the jobs of others.

City Attorney Wanda Cochran explained by law the council was not able to vote on their own pay. An administration votes for the incoming council salaries before hand.

“There is a provision in the Alabama Constitution which prohibits both the increase or decrease of pay during a term,” Cochran said.

A five percent increase in the Orange Beach council’s pay was voted on under the administration of former mayor Steve Russo and will occur in October.

An opportunity to increase during the last term arose and the council voted against it.

“We didn’t make this mess,” Kennon said. “But we are dealing with it as best we can.”