Dozens of layoffs possible for city Dozens of layoffs possible for city (December 03, 2004)

City programs will compete for prioritization during committee meeting on Dec. 14

by Bill D'Agostino

To balance its budget next year, the City of Palo Alto might need to lay off dozens of employees.

Assistant City Manager Emily Harrison said this week that if the city were to eliminate jobs to make up the entire $5.2 million shortfall for 2005-2006, 30 to 50 positions could be cut. Nearly 70 percent of the city's $116 general fund budget for the current fiscal year goes toward salaries and benefits.

The exact number of layoffs will be determined during numerous City Council and committee hearings that will be held over the next few months. The deficit will also mean a reduction to many treasured public services the city provides.

"Buckle your seat belt," incoming fire chief Nick Marinaro said. "It's going to be a bumpy ride."

On Tuesday, Dec. 14, the City Council's Finance Committee will hold a hearing to rank city services. Programs -- including police protection, public works projects, art programs, recreation classes and libraries -- will directly compete for prioritization.

"There is a high service level in the community," said Carl Yeats, who heads the city's budget division. "It is not going to be easy to pick among services. It is going to be a very difficult choice to make. That is going to be the task we have ahead."

The full council will then review a matrix of possible cuts, based upon those rankings, at a retreat on Saturday, Jan. 29. How those specific cuts are weighted will determine which are placed in the draft budget.

"It's going to be a choice," said Tony Spitaleri, the president of the firefighters union. "Is it going to be public safety over nice-to-have things?"

Layoffs aren't the only option before the City Council. Deferring or reducing the scope of capital projects, dipping into reserves and other ideas could be considered.

"I don't think anything is off the table at this point in time," Yeats said. "We are going to look at everything."

But layoffs will almost certainly be needed.

"Services are people," Yeats said. "Not everyone may agree about that but for the most part we can't have tree trimming without having a tree trimming crew. We can't have sidewalk repair without a sidewalk repair crew. It's staffing that does the work."

A complete draft budget will be released in April. After more Finance Committee hearings in May, the City Council will adopt the budget in mid-June.

The $5.2 million deficit is due to numerous factors, including increasing retirement costs and declining tax revenue.

It will be the fifth consecutive year of budget cuts. In past years, the city eliminated more than 40 positions through a hiring freeze, but never needed layoffs. The city also eliminated special events, closed a library and deferred maintenance of city facilities.

Weekly Editor Jay Thorwaldson contributed to this story. Staff Writer Bill D'Agostino can be e-mailed at bdagostino@paweekly.com.

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