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PAY FREEZE FOR CITY EMPLOYEES HELPS COUNCIL BALANCE BUDGET

Fire station, library hours are spared

ByStephen Baxter

The San Jose City Council adopted a city budget on June 16 that keeps a fire station open on Auzerais Avenue, raises fines for overdue library books and parking tickets, and keeps park rangers on patrol at regional parks.

After months of debate and public input, the council closed an $84 million gap in its $880 million general fund in part by negotiating pay freezes with city employee unions. As of June 18, nine of 11 union bargaining units had reached tentative agreements to freeze their pay and cease pay raises for the next 12 months. City leaders have said that because of the services it provides, nearly 70 percent of San Jose's general fund pays for wages and benefits for city workers.

"There is no such thing as a good budget in times like this," said Councilman Sam Liccardo, who represents District 3, which includes downtown. "But this restores city services."

The city's total budget is $2.6 billion, but the down economy meant that San Jose lost roughly $334 million in property tax, sales tax and hotel tax revenue in the last 12 months.

In the spring, proposals had been made to close Fire Station No. 30 at 454 Auzerais Ave., lay off all 24 city park rangers and shorten library hours. In community meetings across the city, many residents said that the city's 6,400 employees should make some concessions to help

balance the budget.

"The public's been pretty adamant that no wage increases and a [health care] co-payment is reasonable," said Councilman Pierluigi Oliverio, who represents District 6, which includes Willow Glen.

Some unions, such as the City Association of Management Personnel and the Association of Building, Mechanical and Electrical Inspectors, agreed to wage freezes without hesitation. On June 16, the International Association of Firefighters Local 230 and the International Union of Operating Engineers Local 3 were the last two groups hammering out deals.

Residents can expect a few changes because of the budget.

Starting July 20, fines for overdue library books will be doubled from 25 cents to 50 cents per item per day. The cap on fines also will rise from $10 to $20.

Branch library hours had been slated to be reduced from six days a week to four, but the new budget keeps them at their current hours. San Jose Library director Jane Light said branches would make other changes to save money this summer, including instituting a "floating collection."

In the new program, library books that are requested from one branch to another would stay there rather than be returned, saving transportation time and money. Other library systems have used the system with cost savings, Light said, and it keeps materials flowing to where patrons want them.

"I hope you won't see too many changes at libraries in the next year," Light said. "Assuming hard times are continuing, we are going to spend some time looking at streamlining services."

City leaders also voted to keep the city's 24 park rangers, who patrol such places as Almaden Lake and Guadalupe River parks. The council also agreed to continue maintenance at the Municipal Rose Garden.

To pay for $11 million in last-minute changes, leaders agreed to trim some things.

For example, the city saved $100,000 by eliminating take-home vehicles for police, $50,000 for marketing for the Mariachi Festival and $50,000 for advertising San Jose's smoke-free parks. Some council members and residents had balked at the billboards and other signs advertising city parks--where smoking is not allowed.

City leaders also redistributed $1 million from the Neighborhood Improvement Reserve Fund and $66,000 from the Neighborhood Strip Retail Revitalization program, according to city documents.

This is San Jose's eighth consecutive year of budget shortfalls, and Mayor Chuck Reed said at the June 16 meeting that next year's budget would probably be just as bleak.

Councilman Pete Constant, who represents West San Jose, said he hoped future budgets would include more details on costs in each department so he could compare specific items and gauge their worth. He also warned that the city's $400 million backlog of transportation repairs could cause big problems if it is ignored.

From potholes on roads to broken irrigation pipes in parks to building repairs, San Jose has $832 million in deferred infrastructure maintenance.

"If we don't completely understand and put a price tag on it, we will have a city that crumbles at our feet," Constant said. "I think it's critically important that we keep plugging away on this."