CIVIC MENTOR Bulletin Board -- Experimental: Pittsburg Annual Budgeting

Wednesday, June 22, 2011

City of Pittsburg: Pittsburg cuts, squeezes to produce balanced 2011-12 budget

Pittsburg cuts, squeezes to produce balanced 2011-12 budget

Posted Date: 6/22/2011

By Rick Radin
Contra Costa Times

Posted: 06/21/2011 02:10:31 PM PDT

Updated: 06/21/2011 05:48:23 PM PDT

PITTSBURG -- Facing continuing declines in property and sales tax revenue, city leaders passed a budget this week that cuts spending by $840,000 while using $2 million in rainy-day savings.

The $30.9 million budget for 2011-12 included seven layoffs and cutting vacant positions, reducing the city's workforce from 261 to about 240.
It also relies on the $8 million budget-stabilization fund to stay in balance.
"The use of the $2 million from the rainy-day fund enabled us to minimize layoffs," City Manager Joe Sbranti said.
Employees chipped in with salary and benefit givebacks, according to Councilwoman Nancy Parent.
"Our employees have really stepped up and worked hard to maximize what we can do," she said. "They've made considerable financial sacrifices."
Pittsburg has tentative agreements with its police officers' association and its police department management team for savings on salaries and benefits in a new contract that will replace the one that expires June 30, Sbranti said.
The terms of the new agreements will be announced next month, he said. "There will be significant savings without reducing the number of officers on the street."
Pittsburg has about 80 police officers, including managers and officers on leave.
The city is continuing to consolidate executive positions. Pittsburg Power Co. Director Garrett Evans will also serve as assistant city manager, replacing Sbranti. Assistant city engineer Keith Halvorson has been promoted to city engineer; his old position will not be filled, Sbranti said.
Pittsburg negotiated new contracts with non-police unions a year ago that raised employee contributions to their pensions, capped the city's contribution to their medical insurance, and lowered the retirement benefit for new employees.
It also reduced the retiree health care benefit for current employees and eliminated it for new workers.
The changes have slowed -- but not eliminated -- increases in the cost of fringe benefits, which will rise to $17.5 million in the 2011-12 budget from about $16.2 million in 2009-10, according to the budget document approved Monday by the City Council.
The city is trying to reopen discussions with non-safety unions and nonrepresented employees to get further cost reductions, including furloughs.
The budget-stabilization fund was created after former City Manager Marc Grisham took charge in 2004. In addition, the city has a $6.8 million general fund reserve that it can use to eliminate deficits.

Contact Rick Radin at 925-779-7166.

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Monday, June 20, 2011

City of Pittsburg: Pittsburg council to weigh cuts, fundraising plans

Pittsburg council to weigh cuts, fundraising plans

Posted Date: 6/20/2011

By Rick Radin
Contra Costa Times

Posted: 06/16/2011 04:11:07 PM PDT

Updated: 06/16/2011 04:11:11 PM PDT

PITTSBURG -- City leaders will consider a proposed 2011-12 budget Monday that includes a list of ideas to cut services and raise money to erase millions in deficits anticipated in coming years.

The primary goal of the cuts and fundraising would be to preserve police services, which account for 80 percent of the city's spending, according to the budget document.
The budget proposal calls for:

Leaving four police department positions vacant, which could limit law enforcement and code enforcement investigations and result in longer waits for evidence, booking, police reports and customer service.

Eliminating a $100,000 budget for police and maintenance employees at the annual Seafood Festival in September.

Seeking alternatives to the city's financial support for its senior center.

Keeping the Sullenberger Swim Center closed after its renovation is completed at the end of the year. "We have the money to complete the pool, but there is no money in the current budget to operate it," Finance Director Tina Olson said. "We can go out to get grants to see if there's another way (to raise the money)."

Raising $100,000 in 2011-12 and $200,000, plus inflationary increases, in future years by completing a deal to place an electronic billboard along Highway 4.

Directing profits from new Pittsburg Power Co. projects to the general fund. Power company money has also been spent in the past on economic development, a community arts nonprofit and redevelopment ventures.

Consider a fee or parcel tax to pay for existing services. The budget proposal also calls for eight layoffs and eliminating 14 vacant positions, reducing the city's work force from 261 to 239 employees.
It would use $2 million from an $8 million budget-stabilization fund to balance the 2011-12 budget.
The city is forecasting a deficit of more than $30 million over the next 10 years, even if salaries for all employees remain the same, according to a finance department report. The proposed 2011-12 budget is about $31.4 million.

Contact Rick Radin at 925-779-7166.