CITY SALARY NEGOTIATIONS (Published in Visalia Times Delta)

Now that the city council has completed salary negotiations with our city employees, I want to share my thoughts and insights on this process. The City of Visalia has over 500 employees, whose salaries and benefits consume over 70% of our general funds (sales and property tax revenues).

The city’s fiscal year began July 1, 2010. We began our negotiations with the five bargaining groups (unions), representing our city employees in early March 2010. Plenty of time, right? No, these negotiations stretched into October before they were concluded. The city’s negotiating team, spent many hours with each union’s labor representatives and attorneys. These five employee bargaining groups include Group A (police managers and supervisors), Group B (Visalia police officers), Group E (miscellaneous supervisors and managers), Group G (Visalia firefighters), and Group M (miscellaneous employees).

Being faced with a $2.5 million deficit, the city council was tasked with closing the budget gap. The alternatives included deficit spending (think federal and state government), layoffs (Fresno and Clovis), bankruptcy (Vallejo), raising taxes (SLO), depleting our reserves and hoping the economy gets better soon (Pollyanna thinking) or reducing salaries and benefits. Numerous CA cities have required such reductions this year. Turlock city employees agreed to another 5% pay cut this year, after taking a 5% cut last year.

Our city council, through negotiations, achieved agreement with four of our employee groups. Group B and their negotiators, after months of meetings, declined the city’s last, best and final offer, such that for, the first time in city history, an imposition occurred. The imposition amount was equivalent to what the other four unions agreed to, i.e., approximately 4% pay decrease and reduced retirement benefits for new hires. The city council gave themselves a 4% pay cut also. The total resulting savings to Visalia taxpayers will be approximately $1,000,000.00, with the balance of the 2010 shortfall ($1,500,000.00) being paid from general fund reserves.

I address the following issues raised by some constituents and media:

1. All five unions and department heads were treated equivalently. Group A (police managers and supervisors) did not receive a 4% pay increase in 2009 while the other four employee groups did. Accordingly, we did not require another 4% pay cut from Group A in 2010. Each union is aware of what the other unions are negotiating, and treating them with disparity doesn’t work when a pay decrease is contemplated.

2. Repair and upkeep of the golf course is a separate line item in the budget. Sprinkler repairs are paid from green fees and revenues generated by the golf course. Funds generated by a city enterprise (golf course, water conservation plant, airport, etc.), are used for maintenance and improvements, and to pay for salaries/benefits for that enterprise’s employees. Each enterprise is expected to be self-supporting. Enterprise funds are not used to pay salaries and retirement benefits for city employees in other departments.

3. A pay raise does not equate to being tough on crime, nor does a decrease equate to being unconcerned about public safety. A 30% pay increase for police in SLO a couple of years ago hasn’t made their streets any safer, although it has contributed to that city’s financial disarray. Everyone is concerned about public safety and gang prevention efforts, and we appreciate our police and firefighters for all they do in our community, just as we appreciate the rest of our city staff. Visalia would be a much different place without their wonderful efforts. Pay increases and decreases are usually just a reflection of economic conditions and available revenues. Visalia public safety salaries compare favorably with Fresno, Clovis, as well as other communities in Tulare County.

4. The role of unions is to look out for their members and to obtain what concessions they can for them. The role of the city council is to consider not only our city employees, but our tax payers as well, and to be responsible in managing limited tax revenues, especially in a bad economy.

5. We are well past the July 1 new fiscal year. Eight months of negotiations is enough time to either reach agreement or imposition with the five unions. Everyone at the table understood that these negotiations could not go on forever.

6. City employees should not expect salary increases or benefits that are inconsistent with private industry. Many private citizens locally have lost their jobs or taken substantial pay cuts.

Quoting a letter from one employee, "I appreciate the fiscal responsibility that city leadership is taking in these tough economic times... . At the end of the day, I truly believe we are on the same team with the same goals for the betterment of our community." On behalf of all Visalia, I thank our city employees for what they do to make Visalia the clean, safe, and enjoyable city it is.

TIGHTENING OUR BELT

The city council recently adopted a budget of $191,617,670 for fiscal year 2010/11, and $199,696,500 for 2011/2012. These are the largest budgets to be adopted in the history of Visalia. The main reason for this is that our waste water treatment plant’s tertiary treatment and water recharge project will cost approximately $80,000,000.00, spread out over these two budget years. This upgrade was mandated by federal and state regulations, and will be financed for the most part by sewer and wastewater fees and by grants. As part of this upgrade, recycled water that is released by the treatment plant will be delivered to local farming operations in exchange for upstream water which can be placed in ponding basins and put back in our aquifer. I’ve toured this well-managed plant, it is an amazing, modern facility.

Much of Visalia’s general funds come from local sales and real property taxes. However, since the peak year of 2007, yearly sales tax revenues are down approximately $5,000,000.00, and real property tax revenues have declined as real property values have dropped. For 2010/2011, this will result in an approximately $2,500,000.00 deficit in the general fund. The city council is charged with closing that budget gap, which is not an easy thing to do. This is the third year in a row of budget deficits for the city, and in this economy, it is impossible to predict how many more years we will be faced with declining revenues. We can either increase revenue (i.e., higher taxes), or cut expenses. Accordingly, the city council made the tough decision to cut expenses, including cutting city employees’ salaries (which account for approximately 70% of our general fund expense). Negotiations with the five unions that represent our city employees have been ongoing from March through October. Through a combination of negotiated settlements and impositions, city staff have taken a 4% pay decrease, together with lower retirement benefits for new hires. The latter will help put the city’s pension plan back on a sound financial footing. Due to these concessions from the employee groups, no lay-offs were required. The city council understands that such cuts are tough on personal and family budgets, and we appreciate our good employees for their willingness to reach a compromise solution. This will result in budget savings of approximately $1,000,000.00. The balance of this year’s budget shortfall will be met from our general fund reserves. Unlike our state and federal governments, our city is fortunate to have such reserves available, but we need to make those reserves stretch as far as possible, not knowing how long the current economic conditions will last.

We were all saddened by the news of the recent shooting of Mormon Bishop Clay Sannar. I arrived at the LDS chapel soon after the incident, having been notified promptly by city staff of the occurrence. I found the crime scene to be well secured by our police officers, who were respectful of the feelings of the witnesses and church members. Our law enforcement officials are to be commended for their quick response, and for bringing the situation to a prompt conclusion, which could have easily escalated. Other faith groups in town were also quick to express their concern and to offer assistance. I join with the entire community in offering condolences and best wishes to the Sannar family.

The Visalia Arts Consortium recently unveiled the winning designs for the bronze plaques to be installed on each of the four corners of the new Santa Fe bridge. Eight Tulare county residents submitted artistic renderings, from which the designs of Dana Lubich were selected. Mr. Lubich’s family has a long history in Visalia. His grandfather, Robert L. Morris, owned businesses located along Mineral King Blvd. and started the first Mobil service station at Mineral King and Mooney Blvd. It is anticipated that these four bronze plaques will be cast and installed by November 2010. The artwork showcases the history of the Santa Fe Railroad and State Highway 198, and our agricultural heritage. Be sure to take special note of these plaques once they are installed.

Mark your calendar for Saturday, November 6, 2010 for a luncheon at the Convention Center sponsored by the Tulare County Symphony League. This is a fundraiser patterned after "Dancing with the Stars" where local "VIP’s" are paired with celebrity professional dancers to raise money for a good cause. The VIP’s dancing this year include Larry Benevento doing a cha-cha, Kathleen Remillard, samba, Supervisor Allen Ishida, rumba, Florence Kabot, salsa, Laurie Tiesiera, cha cha, and yours truly, dancing the quick step. Come join the fun. For reservations, call 627-9002.

If you have questions or topics regarding the city which you would like to have addressed in future articles, please email Warren at wgubler@ci.visalia.ca.us, or call (559) 713-4400 x 3313.

Warren Gubler

Visalia City Councilmember