Manteca needs to shed $2.5 million in expenses.
Given the cutbacks already imposed on the general fund that has 85 percent of its expenses tied up in labor costs which include salary, health benefits, and retirement there is only one place that the city can find that kind of savings – employee expenses.
Employees have already taken a 3.8 percent pay cut that started July 1. It is being accomplished through unpaid furlough days. That move will save the city $1.2 million. The pay cut will be distributed throughout the fiscal year but most of the actual forced furlough days will occur during the holidays resulting in closing city hall for the week of Thanksgiving and the week after Christmas.
Essential employees such as police, firefighters, refuse workers, as well as sewer and water workers will have their unpaid furloughs spread out during the course of the year.
The $1.2 million in savings was combined with other strategies to reduce the general fund deficit so far by $8 million.
City Manager Steve Pinkerton Monday noted that the $2.5 million number “is getting close” to what remains of the deficit that must be bridged in some manner in the coming weeks.
The amount could have been $1 million less had the state not hijacked local revenues in a bid to balance their own budget and avoid layoffs at the state level.
The final deficit for this fiscal year could also be higher as the matrix study necessary to impose cost recovery fees on a wide range of city services ranging from processing developer maps and simple permits for water heater installation to fees for fire services is not completed.
Elected leaders have made it clear there may not be a 100 percent recovery in all areas of city expenses due to the concern that doing so could severely cripple the private sector’s ability to generate jobs.
“We don’t want to kill off development so it’s a balancing act,” Pinkerton said.
One way of saving the city money is for employees to agree to pass on negotiated wage increases that would kick in on Jan. 1, 2010. Even so, that would leave at least $2 million in cuts to make.
Pinkerton said management has started meetings with employee groups to discuss options.
Pinkerton said the city would like to save as many jobs as possible but that would depend upon how talks go with employee groups.
To avoid layoffs from happening, employee groups would have to take pay cuts. Depending upon how much of a cut it would take to have no lay-offs will depend on final budget numbers expected to be solidified now that property tax and sales tax trends are becoming clear.
Manteca already is dealing with a 9 percent drop in sales tax receipts plus property tax receipts will drop 14.7 percent for the coming fiscal year.
The city will be able to do a more firm projection in sales tax once the second quarter figures for April, May, and June are made available to them this week by the State Board of Equalization.
Given the cutbacks already imposed on the general fund that has 85 percent of its expenses tied up in labor costs which include salary, health benefits, and retirement there is only one place that the city can find that kind of savings – employee expenses.
Employees have already taken a 3.8 percent pay cut that started July 1. It is being accomplished through unpaid furlough days. That move will save the city $1.2 million. The pay cut will be distributed throughout the fiscal year but most of the actual forced furlough days will occur during the holidays resulting in closing city hall for the week of Thanksgiving and the week after Christmas.
Essential employees such as police, firefighters, refuse workers, as well as sewer and water workers will have their unpaid furloughs spread out during the course of the year.
The $1.2 million in savings was combined with other strategies to reduce the general fund deficit so far by $8 million.
City Manager Steve Pinkerton Monday noted that the $2.5 million number “is getting close” to what remains of the deficit that must be bridged in some manner in the coming weeks.
The amount could have been $1 million less had the state not hijacked local revenues in a bid to balance their own budget and avoid layoffs at the state level.
The final deficit for this fiscal year could also be higher as the matrix study necessary to impose cost recovery fees on a wide range of city services ranging from processing developer maps and simple permits for water heater installation to fees for fire services is not completed.
Elected leaders have made it clear there may not be a 100 percent recovery in all areas of city expenses due to the concern that doing so could severely cripple the private sector’s ability to generate jobs.
“We don’t want to kill off development so it’s a balancing act,” Pinkerton said.
One way of saving the city money is for employees to agree to pass on negotiated wage increases that would kick in on Jan. 1, 2010. Even so, that would leave at least $2 million in cuts to make.
Pinkerton said management has started meetings with employee groups to discuss options.
Pinkerton said the city would like to save as many jobs as possible but that would depend upon how talks go with employee groups.
To avoid layoffs from happening, employee groups would have to take pay cuts. Depending upon how much of a cut it would take to have no lay-offs will depend on final budget numbers expected to be solidified now that property tax and sales tax trends are becoming clear.
Manteca already is dealing with a 9 percent drop in sales tax receipts plus property tax receipts will drop 14.7 percent for the coming fiscal year.
The city will be able to do a more firm projection in sales tax once the second quarter figures for April, May, and June are made available to them this week by the State Board of Equalization.
