A draft of an independent study of Hollister’s financial outlook
depicts a less painful future than previously advertised, although
the final report likely won’t be finished until next week.
A draft of an independent study of Hollister’s financial outlook depicts a less painful future than previously advertised, although the final report likely won’t be finished until next week.
Service Employees International Union local director John Vellardita and Mayor Tony Bruscia both said the draft showed that previous projections from city officials were too dismal. And that means it’s possible fewer than 36 city workers will be laid off June 30, a policy approved in January.
“We’re going to be looking at tweaking that list,” said Bruscia, though he declined to divulge details from the report.
The city and the union split the $14,000 cost for the study conducted by The Harvey M. Rose Accountancy Corp. The firm finished a draft of the study, and it was delivered to City Hall on Friday. But city officials had questions and sent it back for additional work, according to interim City Manager Clint Quilter.
SEIU represents 70 city employees, including many workers placed on a list of 36 layoffs scheduled to take effect June 30. The union requested the independent study after former City Manager Dale Shaddox released a five-year trend analysis showing a severe debt within five years if layoffs aren’t implemented.
Depending on how sharply Hollister’s financial outlook improves in the new report, it may affect expectations of across-the-board cuts – including talk of eliminating all Recreation Division programs.
Shaddox’s analysis predicted a depleted general fund reserve and a $10.9 million debt by 2009 – without the 36 layoffs. The city’s general fund is currently hovering at more than $6 million – $9 million less than five years ago.
Shaddox resigned from the city two weeks ago. He moved to a home in Oregon and could not be reached for comment. His temporary successor, Quilter, declined to comment on specifics of the draft. He expects a final report some time next week, he said.
“I wouldn’t draw any conclusions or anything until the report’s completed,” Quilter said.
Vellardita, however, believes the independent study will clearly contradict Hollister’s five-year-trend analysis.
“It’s going to give the council some flexibility on some things they need to do,” Vellardita said.
The Harvey M. Rose Accountancy Corp. is credible, Quilter said, and has conducted similar studies for Santa Clara and San Francisco counties.
Bruscia said he’s pleased the city and union hired the outside firm. Because of uncertainty surrounding the city’s finances, the council, he said, had left open the option to trim the layoff list.
“I think we owed them that,” Bruscia said. “They need to have some sense of confidence, as do we, where we stand.”
Kollin Kosmicki can be reached at 637-5566, ext. 331 or at
