At Tuesday’s Council meeting City Manager Yvonne Quiring presented the 2012-2013 Budget. Councilman Steve Conaway asked Quiring for specifics about laying off employees, only to replace their positions with temps and consultants, including cost savings if any. That data was not reflected in the budget. Quiring said, “It’s not as straight forward as you think…we’ll get you what we can.” The Gazette will print that information for public knowledge when it is made available.

Tuesday, June 05, 2012 Fillmore’s City Manager presented the City Council an overview of the 2012-2013 Budget. The special meeting was the first of four workshop hearings to discuss major changes that Fillmore will have to adjust to in one way or another. The budget meetings will continue every Tuesday in June and possibly be adopted on June 26, 2012.

As had been disclosed at previously council meetings and repeated by City Manager Yvonne Quiring on Tuesday, Fillmore’s expenditures have been greater than its revenue for four years running, and with little reserves left, the City is running out of options. Quiring gave a grim view of where the City stands; more layoffs, employee concessions, park closures and possibly another ballot tax measure being considered. Finance Director Glenda Jay described best, “This is like the perfect storm” referring to so many negative things happening at once; the abolishment of the Redevelopment Agency (RDA) by the State, tax money being held back by the Board of Equalization due to litigation/appeals over sales tax agreements that are in dispute, increase in operating costs and the economy/recession resulting in less property tax revenue.

The City can no longer provide the service level even after the layoffs just recently. This second round of layoffs will mean that the City will have cut its staff by 50% in two years. The positions being proposed for layoffs are: administration (1); Community Development (1.5); Community Services (1); Finance (1.25) Public Safety/North Fillmore Storefront (.25); Public Works (3). These proposed layoffs are based on seniority. Thus employees with the least amount of service in some positions will be those laid-off. Also, employees who are bumped back to lower positions will be paid at the lower positions’ rate. The City Council authorized lump sum payment of $3,507 for seven months of medical insurance to unrepresented employees who may be laid off.

Another part of the proposal is to close all park restrooms indefinitely effective July 1, 2012 and possibly closing three of the City’s four parks. The four city parks have an annual maintenance cost of $240,000 for mowing the grass, tree trimming, trash pickup and restrooms. Notices will be posted of the possible park closures and six months later if no solutions are found the closures would begin, starting with Shiells Park because it is the easiest to secure, second Delores Day Park and third Two Rivers Park. Central Park will be the only park to remain open. The closed parks could still be rented out but those doing so will have to provide their own chemical restrooms. There is a hope that volunteers will step forward and help with maintaining the parks and prevent the closures. During the meeting two members of our local American Youth Soccer Organization (AYSO) stepped forward and offered to help maintain the parks.

To make matters worse the State has rejected $1.3 million in previous Fillmore’s RDA beginning deficit, (monies the City was expecting) shorting the City six months worth of debt service. Funds received in June are to be used to pay debt service from July through December 2012 and any previous deficits are not being recognized. The City is appealing but the State isn’t budging. Adding to that, to balance the State Budget the State is still trying to take all the Housing Funds, current and future, with approximately $2.3 million going to either the County or State depending on legislation.

The cost of maintaining the pool has seen some relief with American Water agreeing to supply chemicals and perform some maintenance saving the City $32,500 yearly. Council Member Eduardo Gonzalez suggested asking American Water to consider sponsoring the pool and having a sign displaying American Water’s name at the pool site for around $50,000. Quiring said she would ask.

Fillmore residents can expect an increase in their sewer rate starting next month adding an additional $5.92. Then starting January 1, 2013 they can expect a water rate increase of 4% adding another $1.38 per month to their bill. The Rate Stabilization Fund rating has decreased which resulted in the need to increase rates. Quiring stated that if rates are not increased over the next few years, rates will jump at least 18% when the Rate Stabilization fund is gone. There was some dispute between Council Members Steve Conaway and Jamey Brooks on why the City’s bond rating was decreased; Conaway stating that the City had not done enough building which would gather permit and building fees, property and sales tax, etc., with Brooks responding that the City built too big of a water treatment plant.

Also proposed was that City Hall be opened every other Friday and close for one hour between 12pm-1:00 pm. and at 4pm. Code enforcement will not be responding to zoning or public nuisance and will only be used for emergency housing matters. And graffiti removal will now be the responsibility of homeowners and businesses and possibly some support from volunteers.

There was some good news. Fillmore residents won’t see an increase in the cost of trash collection through December 31, 2014. Also, E.J. Harrision won’t be charging residents for street cleaning or picking up bulky items from households twice a year if called and Harrison agreed to help with pick up after special events along with trash along Central and in parks.

The Senior Center Board has elected to take on their responsibilities as of July 1, 2012. The Senior Center building is expected to become the property of the City and there are discussions on whether to lease it back to the Senior Center organization or come to some other agreement with them. But the Senior Center organization will be taking on the task of administration (something the City had done in the past) and there is still discussion on who will do the maintenance of the building.

Another item that is again up for discussion is putting a half-cent sales tax measure on the November ballot. Although the last tax increase measure cost the City $20,000 and failed, Quiring has allocated $17,000 into the 2012-2013 Budget for that purpose. Mayor Gayle Washburn said she was in support of the sales tax measure and that staff is trying to come up with solutions. Gonzalez questioned the wisdom of a sales tax since the Board of Equalization is holding back monies already and stated, “I’m not too crazy about increasing taxes.” Quiring said the City needs a stable source of revenue and the City only has a certain amount of time until there are no funds left.

Gonzalez also questioned and asked, “How can we attract business when we keep raising our water rates? …While it’s not a tax, it is a tremendous fee.” Council Member Brian Sipes added that water and sewer rates have hindered economic development and “citizens feel nickel and dimed to live here…no matter how you sugar coat it a tax measure will fail.”

Brooks began his response with, “The chickens have come home to roost…past leadership spent it” and continued by saying the impact will be life changing and cultural changing adding that at this point the City is not receiving sales tax revenue and drawing down on the tax overpayment it received years back. “We have to consider a tax measure increase… it’s a matter of keeping our lifestyle. We’re not in the days where the City takes care of everything, we can’t even take care of graffiti.”

Conaway’s response emphasized a need to focus on ways to increase revenue and focus on attracting businesses and developers. He also questioned the cost savings by replacing city employees with consultants and temps asking Quiring directly what the cost saving actually are because that is not stated in the budget she presented. He wanted more specifics about what jobs have been switched around and how much of that job each person is doing. Quiring responded, “It’s not as straight forward as you think…we’ll get you what we can.” Conaway then told Quiring, “There are internal controls that can be used.” Conaway wanted a clearer understanding of who’s doing what job and where that time is being charged and if there needs to be a title change to go along with some of the changes.

On June 12th and 19th the budget discussions will continue and a resolution will be brought back on June 26th which incorporates the changes and establishes a budget. The line-item details in the agreed adopted budget will be delivered to the Council sometime in September/October.