City employees hope numbers
– in many respects – shrink by Wednesday.
Hollister’s 175-person workforce is bracing for an expected
decision by the City Council next week whether to lay off 36
positions.
City employees hope numbers – in many respects – shrink by Wednesday.
Hollister’s 175-person workforce is bracing for an expected decision by the City Council next week whether to lay off 36 positions.
Before that vote occurs, employees are disputing a recently presented “five-year trend analysis” projecting several years of deficit spending – estimates that appear gloomy with or without layoffs.
It showed erasure of the General Fund reserve and a $10.9 million debt by 2009 without layoffs. With the cuts now, it projected the reserve to be drained by 2007.
Many city employees, though, believe the “five-year trend analysis” compiled by City Manager Dale Shaddox and finance officials overestimated the problem, according to John Vellardita, local director of Service Employees Union International (SEIU).
Therefore, employees are compiling their own budget forecast to be released to Council members before Wednesday, he said. Those figures will exhibit a less devastating outlook.
If successful in swaying the Council, they hope for a coinciding trim to the 36 cuts. As of press time, the employees’ projections had not been finished.
“We don’t agree with the city manager that there’s going to be five years of absolutely no growth,” Vellardita said.
Meanwhile, Hollister officials have revised that five-year trend analysis since its release Jan. 12.
For instance, Shaddox said officials examined a discrepancy on the sale of the downtown fire station to the city’s Redevelopment Agency (RDA) – a shift of dollars into the strapped General Fund.
Previously, it was projected Hollister could sell only the land of the estate to the RDA. But the entire property – including the building, too – can legally be sold. So that will result in about a $500,000 boost to the General Fund next fiscal year.
The updated financial projections will be released Friday as part of the Council agenda packet, Shaddox said. Though he said the outlook, and the need to lay off employees, has not changed.
“We’re trying to be very, very careful in reviewing the numbers,” he said.
Before he makes up his mind Wednesday, Councilman Robert Scattini said he will be “looking at all angles” of the financial estimates. Employees have continually approached him expressing doubt in the city’s figures, he said.
“I want in my own heart and mind to know – if we need to lay off 36 people, then we have to,” he said.
Leading the employees’ outcry, Vellardita called Shaddox’s figures out of balance because, he said, they count on the economy remaining flat.
Wednesday, though, Shaddox plans on presenting Hollister’s financial future based on several potential scenarios – some better than others.
Vellardita has also continually questioned why city officials have not included a report on pending service reductions if the layoffs are approved.
“That’s what’s missing here,” he said.
But Hollister leaders have maintained the Council will address potential changes to the city’s organizational structure after approval of the layoffs. Plus, Shaddox said the plan calls for avoiding cuts to positions that are “essential and direct” to the community.
“We’re focusing primarily on the city’s financial situation,” Shaddox said.
Vellardita insisted the numbers are skewed, though. And he took it a step further in questioning whether Shaddox has the experience for his duties.
Shaddox was most recently city manager of Cotati, a town in Sonoma with about a 6,500 population. He started as Hollister’s city manager in May 2003.
“I’m not sure the city manager knows what he’s doing,” Vellardita said.
Shaddox responded: “I know John likes to make personal attacks, but that’s entirely inappropriate.”
City engineer Luis Aguilar, also president of the local SEIU, said he doubts anything about the proposal will change. He referred to Wednesday as “judgment day.”
“I think the City Council is going to implement that one,” he said.
