City council members Tuesday will consider adopting a budget
with a 12.5 percent cut to the general fund while setting the stage
for a plan to reduce staffing and services, according to an agenda
for the meeting.
City council members Tuesday will consider adopting a budget with a 12.5 percent cut to the general fund while setting the stage for a plan to reduce staffing and services, according to an agenda for the meeting.
The council is scheduled to meet at 6:30 p.m. Tuesday at Hollister City Hall, 375 Fifth St. Included on the agenda is consideration to adopt a budget with a total of $39.3 million, including $14 million in spending from the general fund.
That represents a decrease to the general fund – the primary source paying for basic services and employee salaries – by about $1.5 million for the 2010-11 fiscal year, according to figures. Even with cuts to the budget this year, however, council members face continued deficits in the trend line and the city is headed toward a zero balance in its general fund reserve in two years.
After the fiscal year that started July 1 and ends June 30 of 2011, projections show there will be $2.3 million left in the reserve fund. If officials spent at the same pace as they are now, the city would be $8.4 million in the red by fiscal year 2013-14.
The revenue gained from the Measure T sales tax that expires after 2012-13 totaled $2.9 million in the estimates for 2010-11. It means city leaders in the next couple years will have to either find ways to generate relatively massive amounts of revenue, start pushing for an extension to the 1 percent sales tax, or continue cutting costs.
By department, the annual public safety budget of $10.6 million dominates at 68 percent of the overall expenses. By category, personnel salaries and benefit costs account for 72 percent of all fund expenditures – or $10.3 million. Even then, CALPERS temporarily has reduced the amount collected toward retirement benefits to aid customers with economic difficulties, but those payments are merely deferred, not forgiven. Eventually, CALPERS rates are expected to go up sharply.
In addition to cuts in administration, recreation and general services, the plan would replace an animal control officer with part-time community services officers at the animal shelter, allowing shelter personnel to eliminate overtime. The police department would leave a captain and two vacant police officer positions unfilled, while laying off two people. It also would not replace a senior support services assistant scheduled to retire.
The fire department would eliminate two captains and “brown out” one truck company – when sufficient personnel are not available, replacements would not be called in just to staff units on standby. Additionally, all departments would be required to reduce overtime.
Many city union employees have “bumping rights” – in which cases they move down to authorized positions and those with the least seniority are at risk.
The city manager recommended against any early retirement plan. He has stated that it often results in an imbalance of experience and skills since the city could not control who took advantage of any offer.
Look back for more on this story.
