City Hires New Finance Director

Three weeks after the start of the new fiscal year, the city does not yet have a budget. But it does have a new Finance Director whose job will be to work with City Manager and council to find ways to manage city spending and revenues at one of the most difficult times—financially—in the Petaluma’s history.

Bill Mushallo started last Tuesday and comes from Calistoga, where he was a finance director for the last two and a half years. Prior to that, Mushallo was employed by the city of Santa Rosa where he was a financial planning manager.

A message left for Mushallo on Monday was not immediately returned. (Stay tuned for an interview with the new Finance Director)

Mushallo, who beat out about two dozen candidates for the job, will be tasked with helping City Hall create a 2011-12 budget at a time of severe cutbacks.

Petaluma’s revenues have been reduced by a third over past five years from $48 million to $32 million. In the process about 17 percent of the city staff has been laid off and user fees increased. Meanwhile, payroll expenses are estimated to continue to escalate due to rising healthcare costs and pensions, City Manager John Brown has said.

Meanwhile, the search is continuing for the next Public Works director, a position that has been vacant since Vince Marengo was abruptly let go in January. According to Mayor Dave Glass, Marengo was victim of the city’s budget woes. But City Hall insiders have said that Marengo was pushed out because he butted heads with Brown. Neither Brown nor Marengo would comment on the former Public Works director’s departure, citing personnel matters.