Concord council mulls budget cuts

Paul Thissen

Jun. 2, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- CONCORD -- Cuts to this year's city budget will be painful but manageable, city staff and City Council members said Monday night.

But the financial picture keeps getting worse, they warned. The state is looking to take more money, big commercial properties will eventually be reassessed at lower values and the city is burning through its money reserves.

"This is kind of an easier balancing act this year," Mayor Laura Hoffmeister said. "We've got some more difficult choices next year." The city will cut $4 million from a budget of about $78 million this year, followed by $5 million next year and $4.7 million the following year. Those cuts follow the $4 million the city cut in January.

At its May meetings, the City Council considered a $6 million list of potential cuts. The city would lose dozens of employees, from police officers to maintenance workers to administrators, through an early retirement program and possibly layoffs.

In paring that down to the $4 million needed to be cut this year, the council saved some favored programs, including the city's anti-blight neighborhood services workers.

The Senior Center would remain open on Thursday mornings on a limited basis, funded by the Concord Senior Citizens Club. The city also agreed to work with its custodians to eliminate a supervisory position and possibly cut hours or wages rather than contract out custodial services.

Two city employees whose positions could

be cut spoke to the council, saying their jobs were needed. If the pool maintenance position is cut, there will be more work than remaining employees could manage, Stan Rhodes said.

"I fear for public safety and predict an increase in equipment failures," he said. Either way, he will not be out of a job, he said, he would just move to a different position.

And electrician Dean Master said the one remaining electrician would have too much work, requiring the city to hire outside contractors at a cost greater than keeping a full-time employee.

Bad news keeps coming from the state, City Manager Dan Keen said. It is "unbelievable" how many new questions had arisen for the city's budget since the council discussed it in early May, he said.

"The state budget deficit now clearly appears to be a major threat to the City of Concord's budget, as well as probably every city, county and school district in the State of California," Keen said.

The governor's budget proposal includes plans to borrow property tax money from cities -- $2.4 million from Concord. Keen said he worries about other money the state provides the city: Gas tax revenue, property tax revenue from redevelopment agencies and even sales tax revenue.

"Virtually every fund that we receive from the state is potentially at risk," Keen said.

The city's healthy reserve helps this year, but can't sustain the city forever, he said.

"We're really spending down our reserve, but thank goodness we have it," Keen said.

Reach Paul Thissen at 925-943-8163 or pthissen@bayareanewsgroup.com.

Newstex ID: 35469490