Rohnert Park council closes deficit with cuts, reserves

The Rohnert Park City Council adopted a preliminary $26.5 million budget Tuesday for the next year, which uses its reserves to close a $3.2 million deficit, even after making $4.5 million in cuts.

Council members said the budget is a major accomplishment for the city, which faced a deficit projected at $8 million six months ago and the prospect of running out of cash before the end of 2010.

“It’s not a perfect budget, but we have taken that first giant step forward,” said Mayor Amie Breeze. “We want to fiscally be solvent, and we want to start today and move forward.”

The budget anticipates revenues will drop $2.5 million in the fiscal year beginning Wednesday. The 11 percent reduction is largely caused by falling property and sales taxes and fees affected by the economy.

Cuts were made across the board by combining departments, offering a golden handshake that will reduce administration staff by 16 people, leaving several other positions unfilled, cutting services and deferring purchases.

The prospect of further job cuts remains up in the air as the city negotiates with its three unions representing 177 workers.

Dan Schwarz, interim city manager, said the city has made an offer to the employees. He declined to describe the offer, except that it follows what is happening elsewhere in California, where wage and benefit concessions are being sought.

Schwarz said he still must cut the city’s staffing by $1.2 million, which must be achieved through layoffs or reductions in pay and benefits.

“Regardless of whether someone is leaving because they were offered a retirement incentive or we have to lay them off, it’s not easy and we are having an effect on our staff,” Schwarz said.

The public safety department is taking the largest hit, $3.5 million.

Public Safety Director Brian Masterson said he has cut $2.2 million from operations, training and overtime, but still has $1.3 million in cuts to make.

Unless there are wage concessions by public safety officers, the city will lose an evidence technician, community specialist officer and six public safety officers, Masterson said.

“I don’t think I want to say it will be less safe, but there will be increases in crime, and the quality of services the city has come to expect in the past will not be the same,” Masterson said.

The budget is balanced by using $3.2 million in reserves, but unless the economy improves, the reserves will be drawn down and the city will run out of money in the fall of 2011.

“I don’t believe we are out of the deep, dark storm yet,” Vice Mayor Gina Belforte said. “I think it’s a tenuous time for us, and we need to monitor it on a daily basis.”

The preliminary budget does not take into effect employee negotiations, nor does it project any take-aways by the state as it tries to resolve its own deficit, said Sandy Lipitz, the city’s finance director.

“This is preliminary until we finalize negotiations,” Lipitz said. “We will be monitoring this quarterly, and if we continue to see a decline in the economy, we will have to make changes.”

The preliminary budget passed in a 4-0 vote, with Councilwoman Pam Stafford absent.