City broaches $3M in cuts without sales tax extension

Hollister officials Wednesday reviewed the city manager’s “austerity plan” involving about $3 million in annual cuts that would be necessary if a Measure T sales tax extension fails at the polls.
City Manager Clint Quilter presented his plan at the special meeting with council members and other senior staff members. His recommendations, in the event voters reject a prospective Measure T extension next year, were the result of suggestions from department heads with 9 percent annual reductions over three years between fiscal years 2012-13 and 2014-15.
Voters in November 2007 approved the 1 percent sales tax called Measure T that is set to raise about $3.3 million in additional revenue this fiscal year. Four years ago, it was intended to increase dwindled services. But with a continually eroding budget, the special tax funds have gone primarily toward maintaining the status quo. Without that revenue, Hollister and its $14 million general fund budget would face an immediate deficit topping the $3 million mark. 
As part of Wednesday’s discussion at Hollister City Hall, some council members openly expressed skepticism about gaining voter approval. Officials, though, also talked about ways to “mobilize” certain segments of the community to help support a tax-extension campaign.
Quilter pointed to planned cuts for three particular areas – public safety, animal control and recreation – which he said could gain traction with specific voter blocs.
“We’ll see if we can get folks to mobilize these groups,” Quilter said.
Quilter noted that November 2012 would be an ideal time for a ballot measure, with the current tax expiring after March 2013. The city manager contended that the June 2012 election would be less ideal because it is a Republican primary and that voters would be “thinking about tax issues.”
“Not only that,” replied Councilman Victor Gomez, “I want people to vote on this.”
Gomez was among the council members who lauded Quilter for providing the relatively harsh cuts that would balance the budget and maintain reasonable reserves if voters reject the tax extension.
Quilter underscored that the suggestions are not desired as a way to maintain services.
The projections include recent concessions from city employee groups that are estimated to save nearly $600,000 annually by the time Measure T expires. It followed the most recent round of reductions for the city, a 12.5-percent cut to the general fund stretched over the prior two years. 
“These are not recommendations on how department heads feel their departments should be operating,” Quilter said. 
Some of the cuts with potential to have a more significant impact included: 
– Close the police department’s investigations bureau in year two, which would result in a loss of detectives along with patrol officers following up on all levels of crimes. There also would be less priority for lower-level offenses.
– Eliminate 10 officer positions (including two vacant sergeant roles) involving all ranks except chief – a position required by law – while hiring back two non-sworn community service officers.
– Cut back the animal control division by year three to minimal state requirements, meaning the operation would basically act as just a shelter with required rabies clinics.
– Eliminate seven firefighter positions and close Fire Station No. 2 off Airline Highway by year three.
– Increase recreation fees while also considering closure of the division altogether, which is not included in the initial projections but would save an additional $140,000 per year.
– Increase rates at the Veterans Memorial Building, which carries an $80,000 annual deficit,
Aside from ideas included in Quilter’s plan, the city manager broached some other possibilities for council members to consider, such as the idea to close recreation, along with the prospect of consolidating fire services with the county and conducting future collective bargaining for more concessions.
Councilwoman Pauline Valdivia also asked about the idea of allowing other groups, such as the YMCA, to take over recreation activities.
While officials planned to meet again on the topic at a Jan. 9 public hearing, some council members appeared confident the cuts are likely coming.
“I don’t want to depend on Measure T,” Gomez said.
“This is the real world,” added Councilman Ray Friend. “You either face it or not. Don’t expect the pothole to be filled.”
Total cuts by department
Police: $1.3M
Fire: $930K
Parks: $140K
Recreation: $100K
Animal control: $120
Development services: $40K
Finance: $140K
Engineering: $100K
Administration: $160K
Veterans building: $50K
Total: $3.08 million