MARSHALL - Marshall's economic development director Mark Hanson has been cut in the 2010 budget, city administrator Ben Martig said.
"The lay-off was a financial decision," Martig said."It was not related to performance."
Hanson's last day as a city employee will be Dec. 31 but his last day at work was Monday, Martig said. Hanson will be on paid administrative leave through the end of this month, Martig said. "That's standard operating procedure," Martig said of the paid leave.
Hanson has been the economic development director for about three years.
He was paid about $75,000 a year.
A 20-hour part-time position in the economic development department will be retained, Martig said.
Economic development programs will continue as Martig said he will serve as the interim director.
Martig said the city has been using interest from a business fund to help cover the operating costs of the economic development department. As the interest revenue declined, more money was being taken from the interest fund to operate the economic development department, Martig said.
The business fund is used to help new or expanding business or for other projects related to economic development, Martig said.
Martig said he made the decision to cut Hanson's position after the council determined it no longer wanted to use interest from the business fund to help cover economic development operating costs.
The decision was between retaining funding for programs provided through the economic development department or cutting Hanson's position, Martig said.
"Ultimately it was decided we need to keep programs in tact," Martig said. "Unfortunately we had to cut our full-time position to do that."
The city will review options to make the economic development department more self-sustaining including initiating discussions with Lyon County about the possibility of a shared economic development director position, Martig said.
The county does not have an economic development director.