The Hollister City Council addressed the city’s public safety
resources and other expenditures Tuesday in face of a deficit for
the coming fiscal year during the first of two budget hearings.
The Hollister City Council addressed the city’s public safety resources and other expenditures Tuesday in face of a deficit for the coming fiscal year during the first of two budget hearings.
During City Manager Dale Shaddox’s general overview of the budget, Council members discussed construction and operation of a second fire station that would cost the city $4.3 million and more than $800,000 a year to operate and staff.
Also, Council reviewed the possibility of filling vacant police officer positions and other personnel openings that would have a $719,519 effect on the General Fund.
“Roads are important, but police and fire are what maintains the safety of the community,” Councilman Tony LoBue said.
The meetings are a precursor to adopt a finalized budget by July 21.
Shaddox presented his tentatively balanced budget to the Council members and department heads at the meeting.
The breakdown included the city’s revenue stream for 2002-2003 that came up $2.1 million short of last year’s projected intake.
And Shaddox’s report for 2003-2004 showed an additional $2 million of “unavoidable cost increases” that include workers compensation, insurance and county jail booking fees.
“That’s a huge hit on a city like ours,” Shaddox said.
The 75-page draft was balanced only because Shaddox purposely left out numerous costly capital expenses for the Council’s decision, including a second fire station, a new fire engine, the General Plan, the Civic Center and road construction.
The projects are under consideration alongside other potential expenditures, such as four police officer positions and several other vacant job openings.
“These are tough decisions,” Shaddox said.
The Council members have said they want to minimize the money and deficit taken from the dwindling General Fund. Since 1999, the reserve has decreased from a record high of $15.1 million to $9.3 million.
“I want to be sure we preserve enough of our General Fund reserve to carry us through, what I believe, is going to be two to three very hard years,” said Shaddox, who recommended Hollister not dip below $4.5 million in its reserve.
During the past year, the city drew about $3.3 million from the General Fund – more than $1 million of which Hollister used to pay for basic operating expenses.
Shaddox said most cities in California are facing project and service cuts. The City of Gilroy, for instance, adopted its budget June 16 and will also pull from its reserves in 2003-2004, according to Gilroy Finance Director Cindy Murphy.
“The mission tonight is to make you aware of the dilemma, and make you aware of the options that are available,” Shaddox said. “This is a tough policy time for the Council.”
The city could lose even more money depending on the state legislature’s decisions in the coming weeks. The state takes away about 25 percent of the city’s vehicle license fee revenues, according to Councilman Tony Bruscia. That would equate to a loss of about $500,000 from the 2003-2004 budget.
Councilman Robert Scattini called Tuesday’s overview “a wake-up call for a lot of people in (the Council Chambers).”
“I think we have a lot of work to be done yet,” Scattini said.
At its next meeting July 14, the Council will discuss the budget in more detail and potentially direct city staff on final decisions before the July 21 meeting.
“The future isn’t bleak,” Mayor Brian Conroy said. “We’re just going to have to work through it.”
The budget hearings are open to the public.
