City officials face continued deficits
Hollister council members Tuesday approved a budget with a
general fund reduction of 12.5 percent, setting the stage for
significant cuts and likely layoffs.
Council members formally signed off on a budget of $38.6
million
– with an estimated $14 million spent from the general fund,
which largely pays for basic services and employee
compensation.
City officials face continued deficits
Hollister council members Tuesday approved a budget with a general fund reduction of 12.5 percent, setting the stage for significant cuts and likely layoffs.
Council members formally signed off on a budget of $38.6 million – with an estimated $14 million spent from the general fund, which largely pays for basic services and employee compensation.
Officials also weighed several allocations with increased expenditures from the Redevelopment Association – to the Hollister Downtown Association and the Economic Development Corp. of San Benito County.
They approved of raising the EDC allocation from $50,000 to $75,000, but declined the HDA’s proposal to hike its budget from $65,000 to $85,000 for the next two years to add funding for the events coordinator position.
Council members also decided to set aside $50,000 in funding – to decide whether to allocate the funds at a later date – for several nonprofits that traditionally have received money each year from the city.
In presenting the budget, City Manager Clint Quilter noted his support for the additional EDC funding while pointing out he also sits on the EDC board of directors.
“We’re not going to be able to cut our way out of our economic problems,” Quilter said.
With several layoffs already on the table, including the replacement of an animal control officer with a part-time community services officer, there were three volunteers with the animal shelter who spoke out against the reduction, noting how it already is difficult to keep up with current staffing.
Other potential reductions mentioned include cuts in administration, recreation and general services.
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.
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.
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.
