Politics & Government

Council to Focus on Budget Options Tuesday

New round of scrutiny amid fiscal uncertainties.

City council members on Tuesday will look at two  proposed city budget plans Tuesday — with and without the existence of redevelopment — for the fiscal year that begins on July 1. The city is looking at an estimated shortfall between $1.5 million and $4 million, depending on whether state legislators agree to eliminate redevelopment agencies.

As part of the discussion, the council also will address a possible November ballot measure to extend the life of an existing  utility users tax. The 8 percent tax, which collects about $2 million a year, is scheduled to expire in 2012. In November 2010 Pinole a similar measure, which also would have added the levy to water bills. Currently the tax is added to phone, electricity and gas bills.

Grappling with a reduction in revenues from sales and property taxes, the council has made rounds of budget cuts through the reduction and elimination of staff for the current fiscal year. In March the council voted to close the Pinole Valley fire station as of July 1, to save about $1 million a year. The station could be re-opened when funding is available at an unknown date.

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Already, recreation and senior services face higher fees, while some community events have been canceled. Cuts that the council made in March will force remaining recreation programs to pay for themselves.

Gov. Jerry Brown has proposed eliminating redevelopment agencies, which create zones from which collected taxes go into cities' redevelopment budgets instead of general fund budgets. For Pinole, about $2.4 million in redevelopment agency revenue is in limbo. If Brown's plan is adopted by state legislators, most of that revenue would go to schools and special districts instead of the redevelopment agency.

Find out what's happening in Pinole-Herculeswith free, real-time updates from Patch.

The city is hoping to save from $500,000 to $700,00 a year by negotiating concessions from the various labor unions that represent city employees. A hiring freeze is in effect for some vacant positions, including in public safety.

While the elimination of redevelopment could divert up to $740,000 into the city's general fund, that would not happen until fiscal year 2012-2013. The attached file includes the budget report that will be discussed Tuesday.

The public portion of Tuesday's meeting is expected to begin at about 7 p.m., following a 6 p.m. closed session. The meeting will be held in Council Chambers at 2131 Pear St. It will be televised live on Channel 26 and is available for live streaming on the Internet.


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