Grim 2011-12 budget proposal adopted by Council

SEBASTOPOL — City Manager Jack Griffin presented a rather grim
preliminary budget to City Council Tuesday night and although it
represents a “balanced” budget — mandated under state law — the
proposal is rife with troubling trends.
“This is always an interesting time of year,” Griffin said by
way of introduction. “Especially this year,” due in part to the
continued economic downturn, he said.
Griffin outlined national trends that don’t bode well for the
local budget.
“While we sometimes like to think that we may be protected from
or not directly affected by what is happening on the national and
state levels, the fact of the matter is that we’re part of a large
economic system and the issues that impact the country or state at
large impact us too,” Griffin reported.
Post recession unemployment is lasting longer than at any time
in the years since WWII, according to the Bureau of Labor
Statistics, and “re-employment” is at an all-time low in that time.
Most troubling is that California unemployment rates remain at a
peak levels hovering near 13 percent, according to the same report,
three points higher than the national average.
The biggest issues Sebastopol faces are overall declines in
revenue, structural deficits in water and sewer utilities and
maintaining current levels of service despite reducing city
employees to 36 hour work weeks, with the exception of the police
department.
Personnel costs represent 77 percent of the City’s budget.
City offices will be closed on Fridays for the foreseeable
future, which will lead to a savings of more than $106,000. Griffin
thanked City employees for making sacrifices — particularly
department heads and bargaining units — but cautioned that cost
savings will ultimately depend on outcomes of contract
negotiations.
Nonetheless, Griffin reported that all City employees will be
taking home 9- 14 percent less in the coming year, while their
workloads will remain the same. Some departments are staffed below
1990’s levels.
As to water, the City may have been hoisted on its own petard
due to the effectiveness of conservation efforts by the City and
its citizens.
“Water in particular is in trouble,” Griffin said.
According to Griffin, water savings are not commensurate with
cost savings and the water utility is working with a loss of about
$106,000, while sewer remains relatively flat, “barely staying
afloat.”
City staff will be undertaking rate studies this summer and
Griffin expects to present a “rate adjustment program” in the fall,
although rate increases require a vote of the City’s property
owners.
The proposed budget will see an increase in general fund
expenditures from $4,935,421 to $5,028,351, an increase of $92,930
or 1.9 percent and all expenditures are increasing from $11,366,000
to $11,594,394, an increase of $228,394 or 2 percent.
In order to balance the budget, the proposal dips into reserves
to the tune of $90,151.
“The City has the option of balancing the budget without
utilizing reserves,” Griffin wrote in his “transmittal letter” to
council. “However, this would require the downsizing of City staff
beyond the reductions assumed in this budget as a result of
attrition.”
However, “staffing levels have been maintained at a low level
across the board and the avoidance of workforce reductions was a
main priority in development of this budget.
“This use of reserves to balance the budget reflects how tight
the City’s finances have become,” Griffin concluded.
The City will also cut funding in half to various agencies such
as the Sebastopol Center for the Arts, Community Cultural Center,
Senior Center and Chamber of Commerce, among others.
The proposal was passed by a unanimous 3-0 vote, as
Councilmember Sarah Gurney and Vice Mayor Michael Kyes — who is
recovering from recent health issues and was part of the budget
sub-committee — were not present.
Griffin will bring the budget back to Council at the June 21
meeting for final approval by the June 30 deadline.
In other news, Mayor Guy Wilson reported that Vice Mayor Kyes is
steadily improving after suffering an aneurism last month, although
there is no timeline for his return to Council.
Council also approved an updated Bike Lane Feasibility Study
that will be incorporated into the City’s Bicycle Pedestrian Master
Plan.
If implemented, the plan will ultimately cost in the
neighborhood of $1.5 million, but with its adoption, additional
funding sources will become available for the long-term
project.
To download the report, go to http://ci.sebastopol.ca.us/.
David Abbott can be reached at ab****@so********.com.