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.
