Difficult times call for difficult decisions. And if the City of
Hollister’s budget woes is not a difficult time, it would be
hard-pressed to define the situation any other way.
Difficult times call for difficult decisions. And if the City of Hollister’s budget woes is not a difficult time, it would be hard-pressed to define the situation any other way.
The city’s budget has been in a deficit mode since 1999.
The General Fund has dropped from $15 million three years ago to its current $9.3 million. And, the city will have to draw a bare minimum of nearly $700,000 from this fund for the fiscal year 2003-04.
Also, the coming budget doesn’t include funds to fill more than 10 vacant city positions, including five police officers.
And, that $700,000 we spoke of earlier will likely increase throughout the fiscal year as unexpected expenses arise.
Who’s responsible for this budgetary mess doesn’t lay with any one individual, of course, but city officials must evaluate the current state of the city’s finances and review the department’s personnel.
Under the watch of Finance Director Barbara Mulholland, who became director in August 1998 and oversees city finances and advises the City Council, she has on multiple occasions during the past year told the Council the budget was balanced. It’s not.
She informed members last year’s budget would be balanced. However, city officials knew during its budget planning a year ago, a $1.2 million deficit was projected.
She has informed the Council it was OK to draw from the General Fund to pay for projects and services. The General Fund should be used only when necessary.
Under her watch, monies from the General Fund have been used for such expenses as consulting fees and public works projects. In 2002, the city spent $1.8 million on consulting fees, most of which was drawn from the General Fund and Capital Improvements Fund.
In fairness, the former city manager for the past five years recently retired, and there have been a number of issues that have played a part in the city’s budget problems.
Officials have mentioned the state-mandated cease-and-desist order within the city stemming from the 15-million gallon sewer spill, the downturn in the economy and increased insurance costs for city employees.
However, Council, almost to a member, has said it has been misinformed by Mulholland.
We believe her role in this mess should be clearly and impartially evaluated, and a course of action determined.
To respond to this editorial or comment on this issue, please send or bring letters to Editor, Hollister Free Lance, 350 Sixth St., Hollister, Calif. 95023 or fax to 637-4104 or e-mail to
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