Divided Council Adopts City Budget

After long hours of budget workshops and relentless re-crunching of numbers over three months, a split city council approved the 2011-12 general fund budget Tuesday night.

Mayor Roy Swearingen and council members Pete Murray and Tim Banuelos voted for the $10.6 million general fund budget, while council members Debbie Long and Phil Green rejected it. Long said there remained "holes" in the budget, including unresolved questions about a pending worker compensation cost increase and the existence of merit raises in the recreation department.

"Last night I heard for the first time that employees had been receiving merit raises," Long said about a Monday night budget workshop. "I had been led to believe that there were no raises of any kind at any level. "

She also questioned whether in the current economy the recreation department could reach a $150,000 fund-raising goal as outlined in the budget.

"I don't believe we have a budget that's balanced or sustainable unless we have some checks and balances in place for parks and rec," Long said. "They have increased revenue (projections) based upon aggressive fund-raising, but we have nothing in place authorizing this."

Green raised issues with the process taken in crafting the budget.

"I'm disappointed with the process we've been going through and I believe there are monies that should be allocated in certain areas that should not be allocated. I am unhappy with some of the staff members."

Murray said the budget gives general direction and will need adjustments as changes come, particularly in policy and mandates that will come from the state legislature. He also said city staff had tackled a hard job

"All of us had our quirks with the financing and where we'd like to see the funding go. It's terribly difficult for staff to implement everybody's individual wishes. They did come up with a plan that was a collective plan where they itemized what were the most important priorities to the city," Murray said.

Sweringen agreed that the budget is a flexible document that can be amended as conditions dictate.

"As funding changes and as either more revenues come in or less revenues come in, adjustments need to be made," Swearingen said before the vote. "There will be changes in the budget, and it could even start changing next week."

Banuelos said city staff member had a difficult job and commended them for their efforts.

"It wasn't too long ago when we weren't certain whether we were going to have anything other than police and fire," Banuelos said. "I think staff has done an amazing job in terms of trying to keep as much of what we have now in some sort of manner. I frankly didn't think they were even going to be able to come close to what we have now."

Multiple meetings devoted to the budget plan, and uncertainty about how much money the city would lose to the state, have kept council members and city staff adjusting the numbers since March. During those discussions, council members directed that city staff require recreation, cable TV and senior services to become revenue neutral. Those services will receive a fraction of the funding to which they had become accustomed. As a matter of policy, council members pledged no layoffs in the fire and police departments.

"This budget required significant reductions in force and labor concessions and is dependent on that," City Manager Belinda Espinosa said.

For three years property and sales tax revenues have been shrinking, as they have in other municipalities because of the economic recession. The council has approved layoffs and early retirements and it has frozen hiring for vacant city jobs as measures to save money. Negotiations are continuing with city labor unions for up to $700,000 in salary and benefit concessions. Also, the city's fire station in the Valley will be closed beginning July 11, and fees for recreation, senior and preschool services have been raised.

Espinosa, Assistant City Manager Michelle Fitzer and City Clerk Patricia Athenour have agreed to a 14 percent cut in compensation for 2011-12.

Besides the general fund, the overall city budget of $26.6 million includes redevelopment, wastewater collection and treatment, and paying down redevelopment agency debt.

The council delayed a decision on whether to eliminate the city's redevelopment agency or to retain it with substantial restrictions on its use imposed by the state. The city has until Oct. 31 to make that decision.

The council members' full comments are available on the archived video recording of the meeting on the city website.