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Home My WebLink About06/05/2009� B A K E R S F I E L L� CITY MANAGER'S OFFICE MEMORANDUM TO: Honorable Mayor and City Cou FROM: Alan Tandy, City Manager SUBJECT: Generallnformation MISCELLANEOUS CITY NEWS � Next Wednesday's agenda contains an item of huge importance — bids on Parkway. It appears from preliminary bid results that we can build the freeway Allen Road with the money on hand, which is a huge positive. There are aspe including the new disadvantaged business enterprise rules, which will extend the final k next week. We, therefore, ask for your patience in allowing us to present updated inf meeting. Please call if you have questions or concerns. —� In the budget presentation message, I indicated that there were 11 potential displace we would continue to use natural attrition, transfers, etc. to reduce that number as m� prior to adoption of the budget. We are continuing those efforts, and believe the significantly reduced by the time you are asked to adopt the budget on June 24th. Urr reflects our current financial situation. If the State captures money from us, and they < our situation will change. --� In theory, we will have both air conditioning and vote tabulation for your meeting of WE 10th. The completion schedule on the air conditioning is pretty tight with the meeting so it is probable, but not absolutely guaranteed. We have many advertised budget he� have to do in the Council Chambers. If we have unexpected set backs with the air con we will likely suggest shifting some agenda items and move non-hearing items to " The more convenient Closed Session room on first floor, directly across from the Co� is also ready. --� The Bakersfield Optimist Club annually recognizes law enforcement, firefighters and c acts of heroism. This year, Alberto Mendoza of the Recreation and Parks Departme that is honored for his act of heroism when trying to prevent the drowning of a man River Walk. Honorable Mayor and City Council June 5, 2009 Page 2 -� Last month, the Board of Zoning Adjustment approved a Conditional Use Permi installation of an 80-foot tall antenna on the southwest corner of Coffee and Norris Ro< antennas are camouflaged as a tree so they will blend into the landscape. Tr camouflaged, because the surrounding area is comprised mainly of electrical tra transmission lines. A memo from Development Services provides more detail. � Family Fridays at McMurtrey Aquatic Center are held from 6:00 to 9:00 p.m. Admissior a family of four to six and there are games, waterslides, diving boards and family conte: —� There are several activities that will be held in the parks during the summer month: concerts on Sunday nights will start at 7:30 p.m. during the month of June and admissic concerts in the park at Silver Creek on Tuesday nights will be held from 7:00 to 8:0� movies at The Park at River Walk are shown on Wednesday nights starting at dusk movie is "My Man Godfrey". —� The May Report from the Recreation and Parks Department is attached. —� The Streets Division work schedule for the week of June 8t" is enclosed. MORE ON THE BUDGET AND THE ECONOMY Enclosed you will find a letter from Mayor Hall that was sent out this week to Assemblymemk and Danny Gilmore and Senators Roy Ashburn and Dean Florez regarding our oppositior diversion of local government revenues. The resolution finding a severe fiscal hardship v property tax funds are seized by the state is also attached. My office also prepared a on City's current financial circumstances and what is at risk under the current proposals for StatE The Nevada legislature passed a bill last week that will save the state millions of dollars b employee retirement and health care benefits. Both Republicans and Democrats s� reductions were necessary to guarantee the continued solvency of PERS and the Pul Benefits Program. The reforms will not affect benefits to existing employees; only those hire 1 St. The enclosed newspaper article contains more detail. The Governor told the Sac Bee editorial board today that he thinks the State's benefit IevE and are unsustainable and that "... at one point or the other, something has to give." Enclosed are more articles from various newspapers that highlight the difficult times publi facing and how they are adjusting their budgets. MERCED, CA — Over the past two years, 77 positions have been cut from the budc week, Merced's City Council tentatively approved a plan that relies on staff cuts, incl� and the use of $2.2 million in reserve money, to bridge its remaining $10.2 million short Honorable Mayor and City Council June 5, 2009 Page 3 SACRAMENTO, CA — The city's firefighter's union has tentatively agreed to freeze thE forgo a 5 percent raise due to them next month in order to avoid a$5 million cut to the budget that includes eliminating 50 positions (including layoffs of 38 firefighters). Sacramento sent layoff notices to 168 employees, including the 38 firefighters, on Mo indicate that if the labor unions agree to salary concessions, the number of workers wh jobs could dip below 100 and the city's $50 million deficit would be cut in half. Witho from any of the unions, more than 400 positions are at risk. The police union reacl agreement but has been holding off finalizing the agreement until either other unions wE city followed through on cuts to departments whose unions did not reach salary agreem SAN BERNARDINO, CA — The City Council unanimously agreed Monday to a pay-an 8.7 percent for firefighters. Firefighters will also have to sell 48 hours of accrued vacati� the city by the end of the month, and another 48 hours before July 1, 2010. The firefic required to work those hours. This agreement will save the city $1.4 million and mark: concession by employee groups to plug a$9 million deficit. STANISLAUS, CA — County leaders are looking to bridge a$34 million gap in their ger plan includes using reserves, layoffs, furloughs, releasing some minimum-security hours at the libraries and brown grass in the parks. The Sheriff voluntarily reduce� percent, and the County Supervisors are considering a similar announcement of their o� RESPONSES TO COUNCIL REQUESTS • Attached is a memo in response to Councilmember Couch's request for the number of 1,000 population. • Attached is a memo in response to Councilmember Couch's question regarding how 1 funds received over normal revenue growth during the past several years. AT:rs:rk cc: Department Heads Pamela McCarthy, City Clerk Roberta Gafford, Assistant City Clerk ..� �. _� � ;'� �».� June 1, 2009 C�t�� .� ��x.��t�e� C��x.Ctfurmtt (1�ffir� uf�ttg�r �ttrbQ� `�.. ��xz11 Assemblymember Jean Fuller California State Assembly State Capitol Room 3098 Sacramento CA 94249-0032 RE: California Budget Crisis — Opposition to State Diversion of Local Gove Revenues. Dear Assemblymember Fuller: As you are well aware, the economic realities of the past year have had severe on government revenues at all levels. The decline in sales tax, property tax ar local government revenues has drastically affected the operations of cities and c all across the state and nation. The City of Bakersfield (City) is no different and like to share with you some of the impacts that we continue to deal with due t unprecedented circumstances. The City must operate with a balanced budget. To accomplish this, City Admin' has taken ongoing steps to assure that we will be able to operate within the me� are provided by deteriorating revenue projections. Since July 1, 2008, the C eliminated 150 positions, with an additional 11 positions proposed to be cut in F' 10. These positions include actual layoffs of employees, not just the elimin unfilled positions. In addition to the above actions, the City has also implem hiring freeze, eliminated all unnecessary travel and training, eliminated all discr� overtime and extended the life of all equipment and vehicles. While we will strive to maintain core City functions, these measures will impact t of these services to the taxpayers of Bakersfield. In addition to dealing � economic realities of the time, the City is now faced with an additional economic that has the potential to cripple many of our basic operations, including public The burden I speak of will come in the form of a State orchestrated raid of up t local property tax revenues (an estimated hit of $6.5 million to Bakersfield). W Beyond the potential take of local property tax revenues, the State is also conter the seizure of Gas Tax and Proposition 42 funds that would normally be distrik local municipalities for street maintenance programs (an additional $4.8 million � hit to Bakersfield). This action would decimate the City's ability to maintain streets and provide street improvement projects. It is due to these consequences that the Bakersfield City Council unanimously � adopt the enclosed resolution, which implores State leaders to refrain from taki government revenues in an attempt to solve the States ongoing structural imbalance. As Mayor of the City of Bakersfield, I ask that you consider thesE when you are faced with the temptation to take any action that will further problems at the local level. �1.�� Harvey'L. Hall Mayor City of Bakersfield Enclasure cc: Bakersfield City Council Office of the Govemor League of Califomia Cities RESOLUTION Q� A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIEL[ FINDING A SEVERE FtSCAL HARDSHIP WILL EXIST IF ADD1T14NAi LOCAL PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAI UNFUNDED MANDATES ARE ADOPTED BY THE STATE OI CALIFORNIA WHEREAS, the current economic crisis has placed cities under in financial pressure and caused city officials to reopen already adopted budgets 1 painful cuts, including layoffs and furloughs of city workers, decreasing main1 and operations of public facilities, and reductions in direct services to keep spe line with declining revenues; and WHEREAS, since the early 1990s the state government of California ha: over $8.fi biliion of city property tax revenues statewide to fund the state budc after deducting pub�ic safety program payments to cities by the state; and WHEREAS, in FY 2007-08 alone the state seized $895 million in city � taxes statewide to fund the state budget after deducting public safety � payments and an additional $350 million in local redeveloprnent funds were s FY 2008-09; and WHEREAS, the most significant impact of taking local property taxes has reduce the quality of public safety services cities can provide since publi� comprises the largest part of any city's general fund budget; and WHEREAS, in 2004 the voters by an 84% vote margin adopted su' constitutional protections for local revenues, but the legislature can still "borrc property #axes to fund the state budget; and WHEREAS, on May 5 the Department of Finance announced it had pro� the Governor that the state "borrow" over $2 billion in local property ta� cities, counties and special districts to balance the state budget, causing deepe local public safety and other vital services; and WHEREAS, in the past the Governor has called such "borrowing" p fiscally irresponsible because the state will find it virtually impossible to rep� would only deepen the state's structural deficit, preventing the state from bala h��r�net� and WHEREAS, state agencies are imposing, or considering, rnany reg� imposing unfunded mandates on local governments without regard to ho� agencies will be able to comply with these mandates while meeting thei responsibilities; and WHEREAS, the combined effects of the seizure of the City's propert� increasing unfunded state mandates, and the revenue losses due to the ec downturn have placed the city's budget under serious fiscal pressure; and WHEREAS, our city simply can not sustain the loss of any more prop funds or to be saddfed with any more state mandates as they will only dee financial challenge facing our city; and WHEREAS, a number of the City's financial commitments arise from cont including long term capital leases and debt obligations which support securities i public capital markets, that the City must honor in full unless modified by mutua agreement of the parties. NOW, THEREFORE, BE IT RESOLVED, by the Council of the Bakersfield that the City Council has determined that the City will experience � fiscal hardship if the recommendation of the Department of Finance to "boi billion of local property taxes is supported by the Governor and the Legislature; � RESOLVED FURTHER, that the City Council strongly and uncon� opposes the May 5 proposal of the Department of Finance and any oth government proposals to borrow or seize any additional ,local funds, inclu property tax, redevelopment tax increment, and the city s share of the f transportation sales tax; and RESOLVED FURTHER, that the City Council strongly urges the state le and Governor to suspend the enactment of any new mandates on local govF until such time as the economy has recovered and urges the state to provide � funding for ali exis#ing and any new mandates; and RESOLVED FURTHER, that the City Clerk shall send copies of this res� the Governor, our state senator{s), our state assembly member(s) and the L California Cities. ----------o Oo---------- I HEREBY CERTIFY that the foregoing Resalution was passed and adopted by Council of the City of Bakersfield at a regular meeting thereof held on MAY 2 0?N the following vote: AYES S: ABSTAfN: ABSENT: COUNCILMEMBER CARSON, BENN M, WEIR COUCH, NANSON, SULLIVAN, SCRIVNER COUNCILMEMBER 'no h COUNCI�MEMBER O COUNCILMEMBER � 'Q- APPROVED MAY 2 0 �Ot�� HARVEY L. HACL MAY�R of the City of Bakersfield APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney ��- ��• IRGINIA GENNARO City Attorney CITY CLERK and EX OFF 10 of the Council of the City of Bak sfield � �� ,� �a �,� � <:. � �f O � 'F:Ri'r. ��P '�R � CITY OF BAKERSFI ELD Alan Tandy, City Manager SUMMARY OF THE CITY'S CURRENT FINANCIAL CIRCUMSTANCE REVENUE TRENDS: • Job losses and store closures are pervasive in the economy • Declining sales taxes and lower property assessments forced the City to revenue projections downward in November 2008 and March 2009 • Non General Fund revenue sources are declining, including: Trar Development Fees, Park Development Fees, Sewer Connection Fees, etc. BUDGET SUMMARY: • The proposed FY 2009-10 General Fund budget is $15.8 million, or 8.8%, les FY 2008-09 Adopted Budget • The City put expenditure controls in place, including: the extension of a hiri reductions in overtime, travel, training, deferral of purchases, and extension o1 vehicles and equipment • 161 positions have been eliminated since July 1, 2008: 0 141 positions eliminated mid-year FY 2008-09, including: ■ 5 layoffs due to declining workload and revenues ■ 29 vacant sworn police positions 0 9 vacant positions eliminated in FY 2009-10 Proposed Budget 0 11 filled positions proposed for layoff in FY 2009-10 Proposed Budget IMPACTS OF STATE CAPTURE UNDER PROP 1A (2004): • City of Bakersfield's estimated share is $6.5 million, which would equate to the 0 63 Sworn Police positions @$104,000 each; or 0 72 Sworn Firefighters @$91,000 each; or 0 186 Park Laborers @$35,000 each; or 0 130 Streets Service Maintenance Workers @$50,000 each. • Will result in an additional 4.0% decrease on top of the General Fund decrea: in the FY 2009-10 Proposed Budget • Since the City has essentially eliminated all vacant positions, the abo� represent the potential number of layoffs that a"borrow" may require unde (2004) IMPACTS OF STATE CAPTURE OF GAS TAX AND PROP 42 FUNDS: • In FY 2009-10, the City is expecting to receive $4.8 million, which will be used o Salaries of 15 employees ($1.2 million) o For work performed by contractors for street resurFacing projects ($1.2F o For materials used in maintenance and reconstruction of streets ($1.48 o For Capital Improvement Projects funded solely with Gas Tax ($889,30 o For Capital Improvement Proiects funded bv a local match ($657,204) f Le isl�ture C��:s bill cuttin , � �, � �'r%, �'/.z.r��, p �as ve as Review-lournal �ber�efits to ubllc em �� e�s IE FRC __ g p p � , ��' ■ �e CONTINUED FROM PAGE 1 B hired after Jan.1. Gov. Jim Gibbons is expect- ed to sign the bill, which con- Yains reforms similar to those advocated by his Spending and Government Efficiency Commission. While backing the bill, Senate Majority Leader Ste- ven Horsford, D-Las Vegas, expressed concern that the benefit reductions will cause younger people to avoid choos- ing careers in public service. "The processes in �this bill are a major shift for new employees going forward," Horsfoi•d said. But Sen. Warren Hardy, R- Las Vegas, said the reductions are necessary to ensure the solvency of the programs. "We are helping to ensure these program will be here for a long time," added Hardy. Dana Bilyeu, the Public I�,rn-� ployees Retirement System executive officer, said she has no figures on the savings her agency will receive from the change. The bill varies only slightly from one discussed last week in a Senate comrnittee. Bilyeu estimated then that the bill would save PERS about �142 million a year in coming years. The biggest changes to the retirement system affects po- lice officers and firefighters. Under the terms of the reform, they would have to work 30 years, the same as other public employees, before they could retire at any age and receive full benefits. Under the current law, they could retire at any age and receive full benefits after working 25 years. Future public employees who y ED VOGEL bills increasing taxes by $781 CLASVEGASREVIEW-JOURNALCAPITALBUREAU million, which were issued earlier Thursday. CARSON CITY — A bill that During hearings on SB427, saves the uiate millions of both Republican arid Demo- dollars by cutting public em- crats said benefit reductions ployee retirement and" health were necessary to guarantee ( care benefits won approval the continued solvency of the Thursday night on votes.of 19- P�blic Employees Retirement � 2 in the Senate and 41-0 in the System and the Public Em- � Assembly. ployees Benefits Program. Both houses moved quickly The spending reforms will � to pass amended Senate Sill not affect benefits to existing 427. Republican leaders insist- public einployees, only those + ed it pass before'any members - of their party vote to override ► SEE BENEFITS PAGE 5A Gov. �Titn Gibbons' veioes of Chanc�es in. barqaininc� also OK'd .,� �..�� u�,��,�w ..�,�.�,�,�� :,�. � Their retirement pay is cut � percent for eacn y�ar �;�y reiire eariy. il The health care benefit deductibfe pa;d by an individual is $500. B 7he health care benefit deductible paid by a fam+ly is $1,000. ■I A partiai retirement subsidy is availab�e to state employees after they worked five years. Change� approved by lavumatcers for workers hired after aan.1, 2010 ■ All employees can retire at any age after working 30 years on tf�e job and receive fulf retirement benefits. ■ Regular employees who work 20 years can't retire and receive 50 percent of full benefits before age 60. ■ Police and firefighters who work 20 years can't retire and receive 50 percent of full benefits before age 50. �I Regular employees can't retire after working 10 years and receive 25 percent of fuli benefits before age 62 � police ancl firefighters can't retire after working 10 years and receive 25 percent of full henefits before age 60. ■ Their retirement pay �s cut 6 percent for each year they retire earfy. � The health care benefit deductible paid by an individual is $725. �I The health care benefit deductible paid by a family is $1,450. ■ To acquire a retirement subsidy, employees hired after lan.1 will have to work as lang as 15 years for the state. � Premiums paid by the state for health care programs for employees would be reduced by 5 percent. ___ __ SOURCE: 2009 Nevada State Senate ployees. It also requires local governments to approve or reject any collective bargain- ing agreements during public rneetings. The chief executive officer of the local government also must report on the fiscal im- pact of the agreements. Senate Minority Leader Bill Raggio, R-Reno, insisted on the reforms to collective bargaining, PERS and health care benefits before his party would vote to override Gib- Raggio called the reforms in SB427 "a good step forward" that won't penalize existing employees. � Without the benefit changes, he said, the state of Nevada and its PERS system would be in the same position as the fed- eral. government is with Social Security: facing insolvency. Sen. Bob Coffin, ,D-Las Ve- gas, voted against the bill. He said he was concerned that the higher education system of Ne- vada won't be able to hire star ..�.,,�„��.,,.� hon�»en nf r•hanaPc Legislators approve PERS reform - Breaking News - ReviewJournal.com �'��t�'"��I�JI""1"1� �.��1 ., May. 28, 2009 Copyright c0 Las Vegas Review-Journal Legislators approve PERS reform By ED VOGEL LAS VEGAS REVIEW-JOURNAL CAPITAL BUREAU CARSON CITY — A bill that saves the state millions of dollars by cutting public employee retire care benefits won approval tonight on votes of 19-2 in the Senate and 41-0 in the Assembly. Both houses moved quickly to pass amended Senate Bill 427. Republican leaders insisted it pa: members of their party vote to override Gov. Jim Gibbons' vetoes of bills increasing taxes by $ were issued earlier today. During hearings on SB427, both Republican and Democrats said benefit reductions were neces the continued solvency of the Public Employees Retirement System and the Public Employees E The spending reforms will not affect benefits to existing public employees — only those hired Gov. Jim Gibbons is not expected to veto the bill, which contains reforms similar to those advo Spending and Government Efficiency (SAGE) Commission. While backing the bill, Senate Majority Leader Steven Horsford, D-Las Vegas, expressed conce reductions will cause younger people to avoid choosing careers in public service. ��The processes in this bill are a major shift for new employees going forward," Horsford said. But Sen. Warren Hardy, R-Las Vegas, said the reductions are necessary to ensure the solvency "We are helping to ensure these program will be here for a long time," added Hardy. Dana Bily Employees Retirement System executive officer, said she has no figures yet on the savings her receive from the change. The passed bill as it affects PERS is varies only slightly from one discussed last week in a Sena Bilyeu estimated then that the bill would save PERS about $142 million a year in coming years The biggest changes to the retirement system affects police officers and firefighters. Under the reform, they would have to work 30 years, the same as other public employees, before they cc age and receive full benefits. Under the current law, they could retire at any age and receive f� Legislators approve PERS reform - Breaking News - ReviewJournal.com Last week, he also demanded that no public employee should receive any retirement benefits t same as in private industry. But that demand was not found in the passed reform bill. Raggio called the reforms in SB427 "a good step forward" that won't penalize existing employe Without the benefit changes, he said the state of Nevada and its PERS system would be in the the federal government is now in with Social Security — facing insolvency. Sen. Bob Coffin, D-Las Vegas, voted against the bill. He said he was concerned that the higher of Nevada won't be able to hire star professors because of changes in health care benefits. Under the reforms, professors and all state employees and teachers would have to work a min with the state to acquire a monthly subsidy when they retire. This subsidy, from $396 a month can be used by retirees to purchase health care insurance. Previously, the law allowed partial subsidies when employees work as little as five years, a feai said universities used to attract quality professors. Sen. Maggie Carlton, D-Las Vegas, also vot� ��I was brought up to raise up the next generation," said Carlton, explaining she did not want future employees. Hardy said Nevada is the only state in the union to offer any subsides to help retirees buy heal Even with the changes, he said Nevada still offers the most generous retirement package in th� °I feel what we did was in the best interest of the state of Nevada," added Hardy. Coffin still refused to support the bill. "We have cut everybody's pay," he said. ��We have cut everybody's benefits. There is nothing t Contact reporter Ed Vogel at evogel@reviewjournal.com or 775-687-3901. PREVIOUSLY: Senate passes PERS reform on 19-2 vote CARSON CITY — The Senate passed proposed reforms to the Nevada Public Employee Retirem 19-2 vote. The bill will now go to the Assembly. The proposed changes, which would affect public employees hired after Jan. 1, 2010, include: — All employees can retire at any age after working 30 years on the job and receive full retirer — Regular employees who work 20 years can't retire and receive 50 percent of full benefits be� Police and firefighters who work 20 years can't retire and receive 50 percent of full benefits Legislators approve PERS reform - Breaking News - ReviewJournal.com — To acquire a retirement subsidy, state employees hired after Jan. 1 would have to work as I� the state. — Premiums paid by the state for health care programs for employees would be reduced by 5 PREVIOUSLY: 7:38 P.M.: Senate committee OKs bill to cut public employee benefits CARSON CITY — On a 6-1 vote, the Senate Finance Committee approved a bill that reduces re health care benefits for public employees hired after Jan. 1. Both Republican and Democratic members of the committee said the reductions were necessar continued solvency of the Public Employees Retirement System and the Public Employees BenE Senate Majority Leader Steven Horsford, D-Las Vegas, said following the meeting that the enti will vote on Senate Bill 427. "The processes in this bill are a major shift for new employees going forward," added Horsford, concern about whether young people will choose careers in public service with the lower benefl Dana Bilyeu, the PERS executive officer, said she has no figures yet on the savings her agency change. But the passed bill as it affects PERS is little different than one discussed last week in the comr estimated that bill would save PERS about $142 million a year in coming years. The biggest retirement change affects police officers and firefighters hired after Jan. 1. Now th� any age and receive full benefits after working 25 years. S6427 requires them to work 30 year other public employees, before they can retire and receive full benefits. Future employees who retire early also will be docked 6 percent of their retirement pay for eac early. The current cut is 4 percent a year. Senate Minority Leader Bill Raggio, R-Reno, had insisted last week that no public employee shc retirement benefits before age 62, the same as in private industry. But that demand was not in the passed in the reform bill. Following the Finance Committee me called the reforms "a good step forward" that do not penalize existing employees. Without the benefit changes, he said the state of Nevada would be in the same shape with PER government is with the Social Security system — facing insolvency. Sen. Bob Coffin, D-Las Vegas, voted against the bill. He said he was concerned that the higher won't be able to hire star professors because of changes in health care benefits. Schwarzenegger: State worker benefits unsustainable - Sacramento News - Local and Breaking Sa ,l�E i 1�:. �:��'��.�;�e��'.� �� f � 4�� I��,��r7� This story is taken from Sacbee / Our Region / Top Stories Schwa rzenegger: State worker benefits u nsusta i na ble kyamamura@sacbee.com Published Friday, .lun. 05, 2009 Gov. Arnold Schwarzenegger said he doesn't have a problem with state workers making $6: average base pay, but he does not think the "unbelievable benefits" they receive are sustaii "I think that it doesn't bother me as much that a state worker makes $60,000," Schwarzen� "What bothers me more is when you have those unbelievable benefits that cost the state ar amount of money on top of that. So at one point or the other, something has to give." Schwarzenegger answered a wide range of questions from The Bee's editorial board and on during an hour-long Web interview. The video will be available for replay later today at www. sacbee. com/I ive. The governor said that while he may not feel the same way, "people" tell him they believe � should share in the economic pain that the private sector is facing. He already has required state workers to take twice monthly furloughs. Last month, he beg; 5,000 general fund employees and asked the Legislature to cut state worker salaries by 5 p Altogether, the salary cut and furloughs would reduce state worker pay by 14.2 percent. "People come up to me and they say, 'What are those state employees complaining about?' Schwarzenegger said. "'I mean, you just made a cut of 5 percent, layoff, in the general fun� in the special funds, just in the general fund area, 5 percent layoff. And they are screaming complaining. Are they in touch with reality, that the outside, the private sector has 11 percE unemployment? Where is their 11 percent unemployment.' So those are the questions, that question, those are the questions the people are coming up to us with." Schwarzenegger added, "I think the bottom line is, we all have to chip in. It's a crisis." ShareThis Merced City Council tentatively OKs plan to bridge $10.2 million shortfall -- MercedSunStar.com Tuesday, Jun. 02, 2009 Merced City Council tentatively OKs plan to bridge $10.2 million shoi COUNCIL TENTATIVELY OKS PLAN TO BRIDGE $10.2M SHORTFALL By SCOTT JASON sjason@mercedsun-star.com Merced's City Council gave its tentative approval Monday to a$227 million spending plan that relies on stafi money to bridge a$10.2 million shortfall. During a workshop for the 2009/2010 budget, city leaders conceded that some services will suffer as a resu that have been frozen or cut in the past two years. "For a city that continues to grow, it makes it very difficult to provide the level of service we need for the cc Manager Brad Grant told the council. It may take longer for police officers to respond to nonserious crimes. Residents may spend more time in lir City Hall. The Senior Center will be open for fewer hours each week. Despite cuts, the council decided to kick in funding, however small, to outside projects and programs with tl is worth the investment. The budget will be up for a vote June 15. The city has watched its revenue streams, primarily sales and property taxes, steeply decline for the past cc fund revenue, which primarily funds police and fire departments, fell by 13 percent, roughly $5.5 million to That, along with last year's declines patched with rainy-day money, gave leaders a$10.2 million hole they r result, Merced will layoff 14 workers and spend $2.2 million in reserve money so it isn't forced to cut more j employ 492 people. City Manager John Bramble asked for some guidance on a few issues, including what to do if the state borrc property taxes, as recommended by Gov. Arnold Schwarze-negger. Statewide, it amounts to $2 billion The city could either cut that from the general fund or treat it as a loan since the money, by law, must be rf with interest. Councilman Bill Spriggs was skeptical of the plan. "Do you really have faith that the state will repay a loan?" he asked. "I see no evidence that Sacramento's c their financial house in order." Grant said if the state didn't repay the city could slowly trim the amount out of its budget. "To take another $1.2 million -- that's basically another 12 positions," Grant explained. "I just don't think tr go �� The rest of the council agreed that the city should consider it a loan rather than cut further. City leaders also told Bramble to pay membership dues for the San Joaquin Valley Partnership, though somE wondered whether it was worth the $2,500. The council also decided to help Saving Grace Homeless Project, which is run out of Sierra Presbyterian Chu for about $3,000 to buy a kitchen hood as required by the city fire marshal because of all food cooked there The group, a coalition of 23 churches, also asked that the city donate a trash bin, about $945, for the addec their program. "Sierra is always there," Councilman Jim Sanders said. "They are the most proactive of the groups I know." Candice Adam-Medefind, with Saving Grace, told the council later in the evening that the project feeds betw people every night. About 25 people stay the night at the church. It's also let eight people with medical prol Spriggs stood against giving the group money, which he said should be saved for when the city comes up w �. ,...,. ,. �..,.,. Y...,.,. The Modesto Bee � Modesto slices $9M, from parks to fire to planning '�:�.e �Io�de�� Priut "1'his Article __. __ Posted on Wed, Jun. 03, 2ooq Modesto slices $9M, from parks io fire to ptanning By l�dam Ashion aashton@modbee.com last updated June 02. 2009 11:47:31 PM 'I'he Modesto City C011I1C1I OIl 'I'uesday adopted nearly S9 million in painful budget cut5, but got a reassuring sign thai some residents want to voluntccr to tnakc up the gap in small ways. 'I'he spending cuts hii every depariuient — from closiug park restrooins lc> shutting down a firetruck to slashing z5 percent of spenciing from lhc department that oversees economic development and planning. C'.ouncil members deseribed th��sc clecisi�>I�s a,� virtuall�- i►ie��itahle becaiisc� :�[� a prolonged drop in t� revenuc�. The city ex�ct,s io collect abou: S��>f� �nil�i��u l�u• ii� �encd•�il iiincl <��r ihc next year, $ t� million less than it budgeted last year. 'I'he general fund pa�:� for ser��ices that are not lied lo utililti- or use fees, such as la«� enforceinent and parks. Modesto's ��a�notalic oti�look could �;et c�-en ��ot:5c i(� ilic state l�oll<m�s �I2r<�::�4i on plans to borrcnv cash froui loc;al gcnernmen�s, or if city leaders fail l<� persuade public empIo�ec� ujliol�s 1c> acc��E�t a�r�cl:a�c oflab<>r concessi��n� valued al $4.8 mi11io1:. "We'vc got so much �ti.� 1_i�i,�c 1�; c<<l ll��: ;ce'r�: '!zx�l:in� at thiii�s likc �hal �lo_lr of us want to do," Councilman 13rad I-Iawn said. "We're picking aiici c1i<�<;�in:; things ihat would provide the least heartache to the coinmunit��." A$2.i million hit ic� the city's Park,S, Recreation and Neighborhoc�cls I)epartment drew the most atiention froin residents. mn `"�� .:r.E.�:� _ �. . � � �.. f� ` Future budget cuts could include closing You/The Modesto Bee) - - Several spoke up to protest an item lhat saves $174,40o by closing most park restrooms on weekdays. "We have a very high percentage of people that use these restrooins lhat have no alternative," said Robert : neighborhood activist who plans to run for a council seat this fall. Ma}'or Jiin Ridenour replied that money is so tight for the city that residents would have lo suggesi alterna protect their favoi�ite setvices. izidenour said he welcomed suggestions. "We only have so much money and we have a$1 � million cut we have to do beiween now and .July 1," he sa to the start of the budget year. 1)an Stanley, a represeniative from a Modesto teen baseball league, said park maintcnancc was so importa� organization that hc and others in his group would volunteer to keep up fields at llavis Park. �3abe IZulh I,c practice there regularly. "We will drag it. We �vill fertilize it. We will even mow it if we have to," he said. "It's that im�xu•tant to us." Modesto has a flexible program to work with park sponsors. Acting Parks Director Julie Hannon said she's ......... ............�:,...,, t:�.,. o...�t,..!,. The Modesto Bee � Modesto slices $9M, from parks to fire to planning Modesto recently got sotne good news lo smooth out some of ils budget cuts. It received a�;; inillion insura: to compensate for the 1<�ss of John Muir I?lementa�� School, a defunci site on I�.ast Morris Avenue thal burn� 'I'hat money is being used to pay into an employee benefit fund that had becn neglected, to bc�osl the city's r� io trim lhe amount of concessions the city sought from labor groups. Ridenour initially wanied $5.8 million concessions. Bc�e staff writer Adam A.sliton can be reached at a�shtc>n �a?modbe.c�.c�m or 578-2366. .. COUNCII. WA'TCH TIIC MOC�CStO Cl� COUIICII OIl Tl1CS(�dY UI1�iI11I11011S1y VOtC(� t0: . Release �;3.2 million in rede��elopment funds to advance a ��o-unit affordable housing project on Ninlh Modeslo Redevelopment Agency has set aside $Ei.� million for the project, which is being built by I�.AI i, . nonprofii group. I�:AI i is ino�-ing quickly on lhe paperwork bec;ause it's trying to apply for tax breaks ��it] approaching deadlines. . IZeject a scheduled increase in the cost of building permits ihat �ti-as iirtended to rellecl ihe price of inllai: price of a building perinit for a single-family home would have risen to 523, t8� from $2t,fi�o if the cour adopi the increase. I:esident I?.merson I�rake urged the council to go i'oitivard �ti1th the scheduled increas� cc�ntcnding lhat passing on it would make il difficult for [he cit}' to instilute a higher fec when the ccono. I'C�OUIl(j.S. C'ouncil membcrs said city building fees altogethcr approach $80,000 -- ihe cosi c�f sc>me hon market today�. . Require top-level managers and at[oineys to take 96 hours of unpaid furlough time in the 2oog-to budg group of roughly . 4o employees would be prohibited froin cashing out manageinent leave at ihe end of ihis year. 'I'ypically are allowed to cash c�ut a�riion of that benefii each December. 'I'he city c;an impose these changes on tl employces, but ii would have to bargain for them if it wants the same concessions from iis unions. . Reject bids for repairs tc� a traffic operations buildiug on F.lm Strect. 'I'he building ha.s leaks and ventilai: problems. ilepairs would cosl about S24o,o00. The city is delaying the project lo use the money in othe� as street repairs. .'I'he council inet in closed sessic�n to di.scuss labor negotiatic�ns and a potential setllement in a lawsuit a; woman filed against the city alle�ing she was rc�ughed up when she �a�as arrested al a �oth Strect bar in 2 Margaret Shepherd claiined that �lice broke her ribs when they arrested her. '1'he city countered that oi justifiable force in the arresl. —f�(��lItl �i.S11t011 This article is protected by copyright and should not be printed or distributed for anything except personal �se. Copyright � 2009, The Modesto Bee, 1325 H St., Modesto, CA 95354 Phone: (209) 578-2000. The Modesto Bee � At the end of budget road in Modesto �� Print This Article Posted on Mon, Jun. ol, 2009 At the end of budget road in Modesto By Adam Ashton aashton a�modbee.com last updated: June 01, 2009 12:01:44 AM Modesto residents Tuesday have their last and best chance to weigh in on $8.9 million in city budget result in closed public restrooms, dry fields in parks and fewer firefighters. The budget reflects a deep drop in revenue to the city's general fund, which pays for public safety, par services that are not tied to monthly utility rates. Modesto expects to collect $106.2 million for its general fund over the budget year that starts July i, c from what the city budgeted a year ago. The severity of that decline prompted Modesto to reduce the size of its work force, eliminating �6 pos buyouts, early retirements and layoffs. More city employees could lose their jobs if the recession continues or if the state attempts to balance borrowing from local governments. The budget proposal also calls for $5.8 million in labor concessions, such as mandatory furloughs or c Modesto would have to look elsewhere for savings if the city's unions reject those proposals. Modesto has been scaling back on its spending for the past two years, managing to balance its budget freeze and cuts most residents wouldn't notice. This year is different, with cutbacks that most residents will see. They include: — Eliminating a fire rescue truck in north Modesto, a move that allows the city to strike nine firefight. spots will be vacated through early retirements. — Eliminating or reducing the use of a downtown fire engine — Leaving vacant 13 positions in the Police Department — Shutting restrooms in parks on weekdays — Reducing park maintenance — Scaling back on some golf course maintenance and raising green fees to offset a$300,000 loss the year in its golf fund — Considering raising the price of parking downtown to generate more money for law enforcement cc club scene. Little room to lobby In recent years, City Council members had more flexibility to substitute their priorities for Mayor Jim The Modesto Bee � At the end of budget road in Modesto The City Council meets at 5:3o p.m. Tuesday in the basement chamber of Tenth Street Place, lolo io� Bee staff writer Adam Ashton can be reached at aashton(a�modbee.com or 578-2366. This article is protected by copyright and should not be printed or distributed for anything except personal use. Copyright O 2009, The Modesto Bee, 1325 H St., Modesto, CA 95354 Phone: (209) 578-2000. Sacramento firefighters tentatively agree to give up raises to preserve jobs - Sacramento City New 'I�E i 1�:. �:��'��.�;�e��'.� �� f � 4�� I��,��r,� This story is taken from Sacbee / Our Towns / Sacramento City News Sa c ra m e n to f i ref i g h te rs te n ta t i ve a g ree to g ive u p ra i ses to p rese rv jobs rlillis@sacbee.com Published Tuesday, Jun. 02, 2009 In a major breakthrough for the city's grueling budget process, Sacramento firefighters hav agreed to freeze their salaries in order to save the jobs of dozens of their comrades. The tentative agreement reached Friday between officials with the fire union and city labor i requires the approval of the fire union's membership. A vote is scheduled for this week. By forgoing a 5 percent raise due to them next month, the firefighters would avoid a$5 mil department's budget that includes eliminating 50 positions. Some of those positions are alrE but city officials said the proposed cutbacks would result in at least 38 firefighters getting la "It's what we needed," City Manager Ray Kerridge said Monday. "It was a long struggle and end, but it's a huge step forward." Fire union spokeswoman Robin Swanson said union officials had endured a"frustrating proc "their concerns were not always heard." "The negotiators, first and foremost, are firefighters," she said. "They came to the table wai public safety." The tentative agreement is significant not only because of its financial impact, but because could have on negotiations with the city's other unions. Kerridge and Mayor Kevin Johnson said they were hopeful the tentative pact would open thE agreement with the handful of unions that represent non-public safety workers. Those empl make up more than half the city work force - are being asked to delay a 4 percent raise an� furloughs. Sacramento firefighters tentatively agree to give up raises to preserve jobs - Sacramento City New Kerridge said he expected the police union pact to be finalized now that there is a tentative the fire union. If the agreements with the police and fire unions are finalized, and other unions make simil� the city's $50 million deficit would get slashed in half, officials said. That would mean some in the city budget would be scaled back. Vina said the city would likely be forced to eliminate fewer than 100 positions if all the unioi Without concessions from any of the unions, more than 400 city positions were at risk. "These are extraordinarily difficult times for the city and unfortunately, it requires those wh� homes and families to make concessions," Johnson said. "Nobody wants to see cutbacks and concessions, but given the hand we've been dealt in thi crisis, we have little choice," he added. As part of the tentative accord with the fire union, firefighters will collect a 1 percent raise ii followed by a 2 percent increase in 2011. Details of what the firefighters received in return were sparse. However, Vina said the grou� leaders who are also full-time firefighters will receive an extra 400 hours a year of combine� to work on union business. Those officials currently have a combined yearly balance of 4,000 hours. That bump will likely come in handy for union officials, who have discussed launching a carr voter initiative that, if passed, would forbid the City Council from cutting fire staffing. ShareThis Call The Bee's Ryan Lillis, (916) 321-1085. Sacramento sends layoff notices to 168 employees - Sacramento News - Local and Breaki ��.�':�,��.�.;.�`��i�'� �� :�r;� This story is taken from Sacbee / Our Region / Top Stories Sacramento sends layoff notice to 168 employees rlillis@sacbee.com Published Tuesday, ]un. 02, 2009 The city of Sacramento sent layoff notices to 168 employees Monday, although the ac1 number of workers who face losing their jobs could be far less. The employees who received the letter includes roughly 38 firefighters. However, the � union has a tentative agreement with the city on salary freezes that would avoid thosE layoffs. )une 19 would be the final day for those city workers who do lose their jobs. City officials said if other labor unions agree to salary concessions, the number of worl who will lose their jobs could dip below 1Q0. ShareThis San Bernardino council approves firefighters' wage cut � Redlands � PE.com � Southern California � Search PE.com ��ar�i5 �""�g ��``R�cM p�� r Y�H�O. SF4R�H �� 1 i1 1'�� lll11S� Comments � Recommended San Bernardino council approves firefighters' wage cu I!�!� �� '�I LR'Y T4 LISTEN T+} 5.,�i�IIII -n — Download story podcast 10:00 PM PDT on Monday, June 1, 2009 By CHRIS RICHARD The Press-Enterprise San Bernardino City Council members agreed Monday to a pay-and-benefit cut for firefighters aimed at saving the the next 13 months. Council members approved the agreement unanimously. Firefighter union members already had approved it, union said. The agreement, which expires at the end of the 2009-10 fiscal year, marks the final wage concession by San Bernar plug a$9 million deficit in the city's $150 million general fund budget. The contract calls for an across-the-board 8.7 percent pay cut and does away with an earlier negotiating point that v� contribution for health coverage by $664 per employee per month. The percentage-based pay cut was more equitable, said Linn Livingston, the city's human resources director. She said the agreement also requires firefighters to sell 48 hours of accrued vacation time back to the city by the en� another 48 hours before July 1, 2010, the start of the 2010-11 fiscal year. The firefighters would be required to worl Livingston said. She said that's cheaper than the current arrangement. Under the city's "constant manning" policy, any position left v vacation must be staffed by a co-worker on overtime, Livingston said. In return, council members agreed to extend a union contract, which was due to expire at the end of this month, for Further, firefighters will be allowed to log four hours of paid leave per week in a"time bank" for later use. Until the start of the 2010-11 fiscal year, the contract restricts firefighters from drawing more leave from their time ordinarily accumulate in a year. The Modesto Bee � Stanislaus cuts likely to be very visible to residents �� Print This Article Posted on Wed, Jun. 03, 2009 Stanislaus cuts likely to be very visible to residents By Garth Stapley gstapley@modbee.com last updated: June 03, 2009 12:38:11 PM Fewer places for the mentally ill to turn for help. More criminals on the streets. Longer lines for birth certificates. Fewer hours at libraries. More brown grass in county parks. The picture of deep cuts in Stanislaus County services is coming more into focus as leaders prepare for budget hearings next week. It's not a pretty picture. "This can be described as nothing short of dire," Patty Hill Thomas, the county's assistant executive officer, told county supervisors Tuesday. Her office released a proposal showing a$41.8 million deficit in the county's $955 million budget, which is $11.4 million lower than last year's spending plan. County leaders for months have been dialed into curing a$34 million gap in their general fund, representing money over which they have the most control. They're bridging the gap with reserves, layoffs, furloughs and other strategies, including releasing some minimum-security inmates and closing a 64-bed wing at the Public Safety Center. � � � � � � � �■ � � � . 1 � ._,•� � Public Safety Center, Minimum L Sheriff's deputy John Derby aboi the facility. There are 3 sections and C. The 64 beds in B unit are because of budget cuts. June 1, YOU/bahyou@modbee.com) - - Sheriff Adam Christianson said he's been scaling back for a month or two the jail's B Unit, which on Tuesday held 26 men awaiting trial or serving sentences for crimes such as aut� or spousal abuse. Many of those released early, Christianson said, are placed in the department's exp� Work Program, a day-labor program allowing inmates to return home at night. On Tuesday, 331 inmates were enrolled in the program and 8o more were on home detention, for a tc monitored but not in custody. That eases crowding on the 1,301 in custody at the downtown jail and F west of Ceres, the sheriff said. "The last thing in the world I want to do as sheriff is release inmates," Christianson said. "I don't wan- we're just kicking bodies out the back door. We're not. "We may end up having more cars washed, more weeds pulled and more graffiti abated." Closing B Unit should save $800,00o per year "without impact to public safety" because the inmates monitored, Christianson said. A plan to expand the jail will be put on hold in favor of a less-expensive option of shoring up the Honc Thomas said. The sheriff said he is exploring an idea to charge federal authorities to house federal inmates at B Uni n�ii�� a�ri t� �roor� �nr�iitino omr��n� �o a�i� uo ceT�i�� ri�r�o iiri�or t�o r�r�r��oo� �ii�(rot �iit The Modesto Bee � Stanislaus cuts likely to be very visible to residents "We know this fiscal condition very likely will get worse before it gets better," Hill Thomas said. "We't for further reductions." At the county level, responses include shutting libraries for two or three days while 85 employees takE pay. The planning and building department expects to go dark il �/2 days. Those departments are among nine whose 1,304 employees will lose 5 percent of their wages over i3 : reductions will hit managers as well, including District Attorney Birgit Fladager and Assessor poug H Fladager's office and that of the public defender will close on Lincoln's birthday, Cesar Chavez Day an all holidays when courts are closed anyway. The furloughs are helping most county departments meet mandatory expense cuts of i2 percent. Pub: departments, such as Christianson's, must reduce spending by 5 percent. Sheriff lowers his salary Christianson can't reduce his employees' pay through furloughs. So he lowered his own yearly pay of ; percent. He's the only department head taking that step, although most others will experience the sar. through furloughs, said county assistant executive officer Monica Nino. Board supervisors might have a similar announcement about their own pay of more than $�o,000 at hearings, Hill Thomas hinted. Nino's office might have preferred to spare some county departments from the i2 percent mandate, e making more money than they spend, she said. For example, property assessors normally take the time to justify their value estimates when appealec that's not required by law, they may take a pass on any or all of the 694 appeals pending. At risk is ne; potential revenue. "We knew we couldn't shy away from this round of cuts because we know that other cuts are coming,' More visible to many will be uncut lawns in county parks, less opportunity for workers serving increa� veterans and fewer investigations into elder abuse. Responses may be limited "to only the most emer� Hill Thomas said. "There will be times," reads a budget note from the clerk-recorder's office, "that the staffing level will serve the public. Customers will experience longer lines, slower service and documents may not be re; which will result in customers needing to return to receive their documents." Fladager predicts that her attorneys, hamstrung by fewer travel dollars, will show up less often at pri� hearings all over the state to present reasons why convicts should not be paroled. Her investigators w much to guide detectives at homicide scenes, according to the proposed budget. Library funds already cut Other cuts already have been made. Last month, supervisors agreed to reduce mental health services communities and eliminated some substance abuse recovery services. A year ago, supervisors reducec laid off three librarians and half of the system's 138 part-time workers. It's unsettling, county leaders say, how vulnerable they are to the state's money problems. Board chai: DeMartini warned against state officials "robbing local governments of the funding we need to run pr "It's gloom and doom up and down the state," Supervisor Vito Chiesa said Tuesday, "and I don't see it �--- - -- -- ��