« April 2008 | Main | June 2008 »
May 27, 2008
CHICO'S & VALLEJO'S UNCERTAIN FUTURE (BANKRUPTCY)
The City of Chico’s uncertain future (bankruptcy) is about the same as the City Vallejo’s as outlined in the E/R article (Monday, May 20, 2008, Page 5A).
If you read carefully the article, and substitute City of Chico for City of Vallejo, you’ll understand that Chico is very close to the same problems that lead Vallejo to file for bankruptcy; several years of deficit between revenues and expenditures; labor contracts that offer salaries, overtime pay, pensions and health benefits. These expenditures are expected to balloon as health care costs soar and employees retire earlier and live longer. Chico’s police and fire salaries and benefits make-up approximately 75% of the general fund budget, similar to Vallejo’s.
The City of Chico cannot solve it's long range “structural budget deficit” unless it can secure agreements with the City’s employee unions, to substantially reduce salaries and benefits. This is particularly true with City’s revenues leveling off or reducing in the coming years with expenses increasing every year.
The only other solution is for the Council to ask the voters to increase one or more taxes which the Council recognizes will not be approved in the near future.
Posted by Fred at 06:00 PM | Comments (0) | TrackBack
May 21, 2008
PACKING THE CITY COUNCIL CHAMBER GETS RESULTS
Many employees represented by SEIU union ( wearing their special shirts) packed the Council meeting, since there was some indication by members of the City’s finance committee that there departments would take approximately a 12% budget reduction in order to keep the fire and police departments at 5%.
After the City’s Finance Committee discussed items that could be implemented to assist in reduction of the City’s “Structural Budget Deficit” of approximately 6 million dollars, the committee could not agree on the recommendation of the City Manager to reduce all department budgets by 7.5%; so it sent no recommendation to the City Council to consider this item at its meeting of May 20th. One recommendation that was considered by the committee was to only reduce the police and fire departments by 5% and to increase the other departments by approximately 12%. By the way, the other departments provide all of the other essential services for the City’s residents; the administrative services; design and maintenance of the City’s roadways and streets (which are presently under funded); sewer collection and disposal system; parks; airport; and other service relating to the City’s infrastructure.
After a great deal of discussion, the Council supported the City Manager’s 7.5% budget reductions for all departments.
Packing the City Council Chambers brought results for the SEIU members to secure equitable treatment for all departments. They should now keep a watchful eye as the budget is not yet adopted and can be changed at any time by a majority of the Council.
Posted by Fred at 11:54 PM | Comments (0) | TrackBack
May 15, 2008
ANOTHER CITY OF CHICO "STRUCTURAL BUDGET DEFICIT" SOLUTION
The younger generation is always telling me to think “outside of the box”. This suggestion is not exactly thinking “outside of the box” since it has been used successfully in other cities.
Why not consider combining the Police and Fire Departments. If implemented there would be a very, very substantial saving in City funds and would provide more than enough employees to provide outstanding police and fire services to our residence.
There will be multiply arguments against the consolidation from both Departments, since it is not easy to implement changes; we’re always used to doing it in the” good old way”, but it is one way of thinking “outside of the box”.
Posted by Fred at 08:26 PM | Comments (0) | TrackBack
May 08, 2008
ONE SOLUTION FOR THE CITY'S "STRUCTURAL BUDGET DEFICIT"
Since most of the City Council had support from the Police and Fire Unions, I’m surprised that they haven’t met with their friends and secured a simple solution to the City’s “Structural Budget Deficit”.
Agreements with the unions to change the working hours of the Fire and Police employees would go a long-way towards solving the “Structural Budget Deficit” problem.
In the case of Fire Department employees, change the present 24 hour shifts to 12 hour shifts 12 hours; and in the case of the Police Department employees change the present 10 and 12 hour shifts to 8 hour shifts. Fire employees would work approximately 14 shifts per month instead of 8 shifts. Police employees would work 5 days per week instead of 4 or less days per week.
These two simple changes would provide a very substantial budget savings and would allow the Departments to maintain their existing level of staffing; and would not require a reduction in services that has been discussed recently by the Council Finance Committee. Overtime could disappear and each department would have more than enough personnel to maintain a high level of services for City residents.
Posted by Fred at 09:58 PM | Comments (0) | TrackBack