Entries in Budget (7)

Painful times in Local Government

These are tough economic times. No doubt about it. Tough times for individuals, for businesses and also for some municipalities.

NBC Channel 11 out of the Bay Area of California reports that the City of Vallejo has voted to file for bankruptcy.

After nearly five hours, the Vallejo City Council voted unanimously late Tuesday night to file Chapter 9 bankruptcy protection.

The city faces a $16 million deficit in the 2008-2009 budget starting July 1 and unsuccessfully negotiated with its police, firefighter and electrical workers unions for contract concessions through 2012. Public safety salaries comprise 74 percent of the city's general fund budget.

The council and several speakers said the city simply will have no money on July 1 and cannot tell its employees to come to work because there is no money to pay them.

Councilwoman Stephanie Gomes, an ardent supporter of the city's filing for bankruptcy, said, "I want to make sure the City Council is in charge of this city and not those who comprise 80 percent of our general fund."

I have high regard for all local government employees, especially public safety employees. They have extremely tough jobs to do. However, their unions are just plain unrealistic at times. They feel their members should be immune to what is happening in the rest of the "real world".

Mayor Osby Davis said bankruptcy would be "a long, hard, difficult process."

"We will rise out of this darkness and we will shine again," Davis said.

Davis said he believes the city should honor its contracts with the unions, but he was persuaded the city can't pay its debts at this time.

"It's time to do something different. I wish there was another way. I will support this resolution and I don't want anyone clapping for me. It's something I must do as the mayor of this city."

This had to be a very difficult vote for the City Council. I guarantee that there was plenty of lost sleep prior to this vote.

Unfortunately, other City Council Representatives in other cities in California and elsewhere may soon be facing the same vote.

An "us vs. them" divide between taxpayers and public employees will grow.

The anger... envy...whatever it may be, of public employees continuing to get benefits that private sector employees do not enjoy will escalate.

Bankruptcy is not a quick fix. There is no quick fix. This will be painful for all.

Posted on Thursday, May 8, 2008 at 09:26AM by Registered CommenterAl Arnold in | Comments1 Comment

The Learning Curve of Elected Office

I have long said, that describing what it is like sitting at the Mayor's desk is impossible. It is so different for everyone that does it.

New Mayor Carlo DeMaria of Everett, MA would certainly agree. From Boston.Com we learn about his first few days in office.

Everett's new mayor thought he was well-versed in city politics, given his 14 years on the Common Council and Board of Aldermen. Still, Carlo DeMaria admits his jaw dropped when he took the mayoral reins three weeks ago and discovered that, for years, many city employees have been given cards that allow them to gas up their cars for free at a facility reserved for city vehicles.

Free Gas? Not a bad benefit for a City employee, huh? It get better...

In addition to gas cards, DeMaria said he learned that the city apparently has been footing cellphone bills for many employees. And he is eyeing the fleet of city-owned automobiles and the policy that has allowed some employees to take them home at night. Precisely how many employees are given phones, cars, and cards he is still trying to determine.

For a mayor who took office pledging to streamline operations and gain efficiencies, the discovery of widespread pricey perks in City Hall is not sitting well.

But, it isn't just gas and cellphones the new Mayor is after...

A week after taking office, DeMaria asked all department heads who are interested in retaining their positions to submit a letter of interest, a resume, and an assessment of their respective departments, including how they can contribute in the future.

Some may hear that their position is being done away with entirely.

I don't think Mayor DeMaria will have the support of the unions next election, but he would certainly have mine.

Welcome to the Club, Mayor... Welcome to the Club.

Posted on Friday, February 1, 2008 at 06:03AM by Registered CommenterAl Arnold in | CommentsPost a Comment

Local Government Consolidation

Many states have discussed cutting the number of local government units through consolidation, to no avail. I have written about this issue previously. We now learn this is a subject of discussion elsewhere.

"The number of local councils in Western Australian would be slashed from 142 to 30 under a plan outlined by a group promoting local government management."

Round and round we go ... where it will stop, ... nobody knows.

 

Posted on Friday, September 28, 2007 at 09:31AM by Registered CommenterAl Arnold in , | CommentsPost a Comment

Overpaid Government Officials?

The complaints are non stop about overpaid local government officials. Not necessarily the elected local officials, but the appointed officials. The Town of Christiansberg, VA recently gave their Town Manager a 17.5% raise. His salary is now $125,000.

Overpaid? Doesn't look like it according to the Roanoke Times and columnist Christian Trejbal, who surveyed the issue. That 17.5% raise only kept the Town Manager about average for comparable cities of that size. If Christiansberg wants to keep Town Manager Lance Terpenny, they need to pay or risk having some other community make him an offer he can't refuse. Pretty basic thinking.

Then however, Mr. Trejbal's thought process starts to fall apart.

He correctly states, "He oversees the staff and day-to-day town operations. He makes the council's will become reality".

But, then he shows his anti development bias with, "there is the gargantuan commercial district at the north end of town that is generating so much tax revenue. If the council wants that sort of pavement-intensive development, then Terpenny appears to be the man".

And, "perhaps it is time for a fresh perspective, though. Terpenny has been manager for a decade, and was himself the groomed successor to John Lemley, who was town manager for 40 years".

Also, "Momentum in local government can be a dangerous thing". 

It appears the Town Manager is doing too good of a job implementing policy Mr. Trejbal doesn't like, so he would like an ineffective Manager to implement policy.

If they lower that $125,000 salary they might be able to hire someone untested and incompetent to stop this "momentum" the city has.

What kind of warped thinking is that?

 

Posted on Friday, September 21, 2007 at 09:30AM by Registered CommenterAl Arnold in | CommentsPost a Comment

City Budgets and Taxes

DeLand, Florida is going through budget pain, much the same as every community is going though budget pain. What to fund? What to cut? The faces and voices debating these issues change location, but the discussion is the same.

The Deland-Deltona Beacon has published a survey that asks the citizens to help determine the answers to the funding/cutting dilemma.

The present budget used the method of trimming around the edges and a little contingency borrowing to solve their budget woe. As the Beacon stated "It’s akin to pulling off a Band-Aid slowly." Ouch! As painful as this approach is, it is nothing compared to what looms in the future for DeLand. Thus, the survey.

The survey asks citizens to check up to five items they believe should continue funding and up to five items they believe should not be funded. While in theory this survey sounds like a good idea, I see a fatal flaw in the survey.

The survey simply asks which items should continue and what items should not be funded. Not suffer cuts, simply should not be funded. Gone from the budget. Many of the items listed are vital community services. Police, Fire, Water, Streets, Elections ...

How does a city not fund those at all?

After you remove those vital services as possible items not to be funded, the list of items to consider becomes very small. Also, the total amount budgeted for the non-essential services is very small. Get rid of all of them and a budget crisis will not be solved. Not only will the budget crisis not be solved, the quality of life of the community would be such, that people wouldn't want to live there. As an example, what "family" would want to live in a city without playgrounds or recreation services for their children?

Budgets cannot be balanced by simply totally funding or totally not funding certain services. It ain't that simple. Any survey which implies it can, isn't worth the ink used to print it.

Posted on Monday, September 3, 2007 at 08:48AM by Registered CommenterAl Arnold in | CommentsPost a Comment
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