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Council prepares for budget cuts
City executives have been asked to find areas to trim from departments amid $9.4-million gap.
By Jason Wells
CITY HALL — A projected $9.4-million budget shortfall for fiscal year 2008-09, together with a general-fund reserve that is $5.28 million less than previously thought, had City Council members on Tuesday warning of salary freezes, department cutbacks and a critical review of overtime pay as potential tools to close the gap.
The budget outlook came as the council and city executives prepare to draft a balanced budget in time for adoption on June 24, a week before the start of the new fiscal year.
“We have quite a bit of work to do,” Councilman Frank Quintero said.
Even with a revised $2.39-million reserve and robust overall economic position — including a high credit rating and a $500-million investment portfolio that continues to perform strongly — City Manager Jim Starbird acknowledged that the City Council would face “considerable challenges” in balancing ongoing revenue with persistent community demands.
Those demands are projected to grow to $174 million next fiscal year on revenue of $164.6 million, creating a $9.4-million gap, according to a city report.
“A lot of effort will have to be made in the next few weeks to bring those in line,” Senior Internal Auditor Bill Fox said.
Starbird has already placed a moratorium on recruiting for existing vacant positions and has asked city executives to prepare plans on how they would cut 5%, 7.5% and 10% from their respective departments.
Councilman Bob Yousefian also asked the city attorney’s office to evaluate the possibility of reopening labor contract negotiations with employee unions as a way to stave off any planned raises until the city rides out the economic turbulence.
Yousefian also gave the first warning that overtime pay would be scrutinized heavily as various department heads presented their budgets this year, lumping the pay in with the sort of “frills” that should be the first to go in uncertain economic times.
Several self-styled community advocates have heavily criticized the Glendale Fire Department over the past six months for refusing to deviate from a staffing policy that the critics argue perpetuates millions of dollars worth of overtime hours a year.
While the detailed critiques received a lukewarm response from the city several months ago, Mayor John Drayman said they had become the “white elephant” in the room as the city kicked off its first budget study session.
“We need to address it and move on,” he said.
He made the unusual move of offering Bruce Philpott, who has to the City Council week after week during oral communications to argue against Glendale Fire’s so-called over-staffing policy, 30 minutes at a May meeting to present his entire case uninterrupted in exchange for a reprieve from his weekly addresses.
Glendale firefighters have rebuffed Philpott’s cost-saving position as one that would produce an under-prepared, ill-equipped department.
Councilman Dave Weaver, in a nod to their case, said he would fight any cuts to public safety departments, be it police or fire.
“I will always put public safety No. 1 and infrastructure right up there with it,” he said.
Even so, with millions to trim from projected costs, Drayman warned his colleagues to “not become too invested in any entrenched position.”
Glendale Water & Power officials are scheduled to kick off the budget study sessions next week with a report on their operational expenses and enterprise revenue sources in what will be a series of weekly meetings through June.
Starbird, by city charter, must present the City Council a balanced budget prior to July 1 to vote on.
And despite the confluence of feisty budget descriptions used at Tuesday’s meetings — “blood,” “boxing gloves,” “lean,” “shield” — Councilman Ara Najarian said he was confident the city would make it through its annual balancing exercise in decent shape.
“It is going to get done,” he said. “We will get through it.”
JASON WELLS covers City Hall. He may be reached at (818) 637-3235 or by e-mail at jason.wells@latimes.com.
The budget outlook came as the council and city executives prepare to draft a balanced budget in time for adoption on June 24, a week before the start of the new fiscal year.
“We have quite a bit of work to do,” Councilman Frank Quintero said.
Even with a revised $2.39-million reserve and robust overall economic position — including a high credit rating and a $500-million investment portfolio that continues to perform strongly — City Manager Jim Starbird acknowledged that the City Council would face “considerable challenges” in balancing ongoing revenue with persistent community demands.
Those demands are projected to grow to $174 million next fiscal year on revenue of $164.6 million, creating a $9.4-million gap, according to a city report.
“A lot of effort will have to be made in the next few weeks to bring those in line,” Senior Internal Auditor Bill Fox said.
Starbird has already placed a moratorium on recruiting for existing vacant positions and has asked city executives to prepare plans on how they would cut 5%, 7.5% and 10% from their respective departments.
Councilman Bob Yousefian also asked the city attorney’s office to evaluate the possibility of reopening labor contract negotiations with employee unions as a way to stave off any planned raises until the city rides out the economic turbulence.
Yousefian also gave the first warning that overtime pay would be scrutinized heavily as various department heads presented their budgets this year, lumping the pay in with the sort of “frills” that should be the first to go in uncertain economic times.
Several self-styled community advocates have heavily criticized the Glendale Fire Department over the past six months for refusing to deviate from a staffing policy that the critics argue perpetuates millions of dollars worth of overtime hours a year.
While the detailed critiques received a lukewarm response from the city several months ago, Mayor John Drayman said they had become the “white elephant” in the room as the city kicked off its first budget study session.
“We need to address it and move on,” he said.
He made the unusual move of offering Bruce Philpott, who has to the City Council week after week during oral communications to argue against Glendale Fire’s so-called over-staffing policy, 30 minutes at a May meeting to present his entire case uninterrupted in exchange for a reprieve from his weekly addresses.
Glendale firefighters have rebuffed Philpott’s cost-saving position as one that would produce an under-prepared, ill-equipped department.
Councilman Dave Weaver, in a nod to their case, said he would fight any cuts to public safety departments, be it police or fire.
“I will always put public safety No. 1 and infrastructure right up there with it,” he said.
Even so, with millions to trim from projected costs, Drayman warned his colleagues to “not become too invested in any entrenched position.”
Glendale Water & Power officials are scheduled to kick off the budget study sessions next week with a report on their operational expenses and enterprise revenue sources in what will be a series of weekly meetings through June.
Starbird, by city charter, must present the City Council a balanced budget prior to July 1 to vote on.
And despite the confluence of feisty budget descriptions used at Tuesday’s meetings — “blood,” “boxing gloves,” “lean,” “shield” — Councilman Ara Najarian said he was confident the city would make it through its annual balancing exercise in decent shape.
“It is going to get done,” he said. “We will get through it.”
JASON WELLS covers City Hall. He may be reached at (818) 637-3235 or by e-mail at jason.wells@latimes.com.
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