Many of Hollister’s 175 employees are real nervous, as plans to
cut about 40 positions during the next seven months have darkened
the mood around City Hall.
And while the outlook seemed rock-bottom, it just got worse.
With the new governor’s repeal of funding previously allocated
by the state, Hollister will lose about $750,000 immediately
– meaning the window for some people to find another job between
now and July just shattered.
Many of Hollister’s 175 employees are real nervous, as plans to cut about 40 positions during the next seven months have darkened the mood around City Hall.
And while the outlook seemed rock-bottom, it just got worse.
With the new governor’s repeal of funding previously allocated by the state, Hollister will lose about $750,000 immediately – meaning the window for some people to find another job between now and July just shattered.
The city may have to consider cutting 10 or more positions by January or February, according to City Manager Dale Shaddox.
“The worst keeps getting worse,” said Shaddox, noticeably distressed over the situation.
At the City Council meeting tonight, Shaddox said, he will request that two Council members form a subcommittee to work with senior staff members on a contingency plan regarding the matter.
Meanwhile, many employees around town are quibbling at the city’s handling of the situation – while wondering if they’re among scores of people facing possible layoffs.
Shaddox has said every job in the city is under examination, including public safety positions and his own. He has been meeting with department heads for the past couple months. They have been determining what positions are most expendable, and officials also plan to offer early retirement packages to eligible employees.
“I want to put an end to the anxiety,” Shaddox said. “Our employees deserve to know as early information as we can give them.”
For 2003-04, the city has already budgeted to exhaust more than $700,000 from its depleting General Fund reserve, which means it plans to spend that much more than it generates in revenues. And Shaddox says there is essentially nowhere else to turn for cuts. Hollister is already projecting $1 million deficits into its budget planning for the next couple years.
The retirement packages would lead to fewer outright terminations, Shaddox says. And the city also recently asked the entire workforce, “across the board,” if they would forego pay raises next year that are stipulated by contracts, according to Sgt. Ray Wood of the Hollister Police Department and confirmed by other officials.
But the employees, according to Wood, with the exception of some mid-management level people, “said absolutely no.”
Councilman Tony Bruscia blames the recently completed negotiations on a new contract with a local union – Service Employees International Union – for that denial from city employees. SEIU represents about 70 members of the workforce. Bruscia said the union and its head, John Vellardita, tainted employees’ perceptions on the city’s situation. Vellardita did not return phone calls from the Free Lance to his Salinas office.
“I was disgusted with how the SEIU and John Vellardita handled the whole negotiations with the employees, and how they’ve tried to create this ‘us versus them’ mentality,” Bruscia said.
Bob Martin Del Campo, a Hollister firefighter and president of the firefighters union, said the uncertainty has hurt morale throughout the city. Officials, he said, should consider dipping further into its General Fund reserve this year.
“We can probably find another avenue other than layoffs,” he said.
Furthermore, Del Campo said, the timing of the intentions – it being the holiday season – has further dampened morale. For the first time in many years, he said, some firefighters have applied to other departments.
“Who wants to be walking on egg shells on the job?” Del Campo said.
Council members, who will make the final decision on position layoffs, have acknowledged the cuts will soon arrive. Councilman Tony LoBue visited with a group of concerned firefighters last week to discuss the issue.
He acknowledged a need for cuts, but it is unclear at this point what jobs are most vulnerable. He did, however, express a willingness to further tap the General Fund reserve.
“To have 30 percent of the budget in reserves is a lot,” LoBue said. “If we need to dip into reserves – well, reserves are for a rainy day. I think that rainy day is here.”
The rainy day has actually lasted for the past five years. The city has dipped into its once mighty reserve fund annually since 1999, when it was $15 million. Now it’s less than $9 million. And the Council has set a policy to remain above $4.5 million by the time the current economic drought ends, which they hope happens within three or four years.
And as Bruscia pointed out, the 2004-05 budget could be worse than the current cycle.
“We have to be careful about burning through it (the reserve) too quickly,” Bruscia said.
The upcoming decisions are tough, Bruscia said, as Council members care about employees in the workforce, people whose livelihoods depend on the city. Shaddox echoed Bruscia’s sentiments.
“It’s very hurtful for me to have to sit here and consider these things,” he said. “These are folks who have built their careers providing good service to the community.”
