Politics & Government

City's Budget Problems Focus of Tonight's Meeting

Petaluma facing $2.3 million budget deficit next budget year, making layoffs more likely

The council will pick up discussion of ongoing budget problems, including a projected $2.3 million deficit next year, when it reconvenes Monday. If the deficit is not addressed, it will balloon to $15 million in the next three years, according to City Manager John Brown, impacting the city’s credit rating and further depleting the city’s reserve fund.

That means layoffs of city staff are on the horizon, although the council has discussed a variety of other measures to avoid cutting jobs. These include:

  • eliminating employee salary step advancements,
  • increasing employee contributions to health care premiums,
  • continuing to defer cost of living adjustments for city employees and
  • continuing existing furloughs (time off for which staff are not paid).

The biggest cost savings would come from continuing the furloughs, which would save $550,000 a year, according to Brown. Currently, city employees are required to take 2.5 hours of leave every two weeks or have their salaries reduced by an equivalent amount. In order to increase savings, each city worker would have to take 10-12 hours off every pay period, meaning city services would be impacted as employees work less hours.

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Another option is increasing employee contributions to their health care premiums, although city workers have not favored this approach. During recent discussions, the city has suggested increasing employee contribution for health care to 9 percent.

Other areas where the city is looking for shave some costs is the fire department, which is projected to have more than $1 million in overtime costs this fiscal year, largely due to numerous vacancies that have gone unfilled. One way the department could save money is if it lowers its minimum daily staffing levels from 14 to 13 firefighters at any given time.

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But Chief Larry Anderson has said if that happens, the department will not be able to meet its response time. Firefighters currently arrive on a call within four minutes at least 78 percent of the time.

Another option would be to not use overtime to meet minimum staffing levels at all. But that would result in one fire station being closed, increase response times as well as the city’s ISO (Insurance Services Office) rating, meaning residents’ fire insurance rates will increase, Anderson said.

Monday's meeting starts at 7pm.


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