Sebastopol faces 10% budget cut

Sebastopol, facing its first real test of recession-era financing, will have to find a way to trim almost 10 percent to balance next year's budget.

"Revenues are down, transient occupancy tax is down, sales tax receipts are higher than expected but still trending down and property taxes are flat," said City Manager Jack Griffin. "Revenue-wise, we are flat at best. But expenses, health care costs and retirement, continue to rise."

The city's budget for the fiscal year beginning in July is projected to be $4.8 million, $200,000 less than the current year's budget.

To meet that figure requires cutting $400,000 after two previous years of belt-tightening that included Friday furloughs and leaving vacant posts open.

Sebastopol has 44 employees, with 26 belonging either to the Police Officers Association or Service Employees Union International bargaining units.

Police services are the largest part of the city's budget, $3 million, but the city saves money by having an all-volunteer fire department.

Griffin said the union contracts expire this year and negotiations have begun, but he declined to give details.

There also is lingering concern that the state in its own budget cuts will eliminate redevelopment funding for the city's Community Development Agency, which has a $4.8 million budget and pays a portion of some city employee salaries.

Griffin, Vice Mayor Michael Kyes and Councilman Patrick Slayter are working on the preliminary budget that will be presented during a community meeting May 20. The City Council has until June 30 to pass a balanced budget.

"Obviously no one wants to see layoffs, there is no one to lose without really hurting the city, there are not that many employees here," Slayter said.

"In a reasonable scenario, we won't lay anyone off," Kyes said. "People may not get raises, but they will still have jobs. There may be cutbacks in some of the things the city supports. It is how much we will cut from what we normally donate to our non-profits. The reality is we may not be able to support them at all this year."