Chula Vista Mayor, City Council Voluntarily Take First Step Toward Pension Reform
Community of Eastlake Saturday, September 11th, 2010Chula Vista’s Mayor, City Council and the City’s executive staff have all agreed to voluntarily pay the employee share of their CalPERS retirement plans no later than January 2011.
The contribution amounts to an 8-9% cut in compensation and will generate over $201,236 in taxpayer savings.
“I know the Mayor and City Council agree with me that leadership starts at the top. If we expect our employees to sacrifice, then we need to do the same,” said City Manager, Jim Sandoval.
The City’s forecasted budget shows at least a projected $12.5 million shortfall for the next fiscal year. Like cities all over California, Chula Vista has continued to experience a significant reduction in revenues as a result of the national economic recession. Since 2008, Chula Vista has experienced a decline of 17% in sales tax receipts; 18% in property tax; 21% in franchise fee revenues; 28% in Transient Occupancy Tax; a 14% drop in Motor Vehicle License Fees and a 39% decline in Development Revenue.
The projected $12.5 million shortfall for fiscal year 2011-12 does not account for the potential loss of Telecommunications Users’ Tax (TUT). A ballot measure to modernize the TUT language and definition is on the November 2 ballot. The initiative, known as Prop H, if approved would secure the existing revenues which range from $5 to $6 million annually.
Should the Prop H ballot measure fail at the voting booth, the City could be facing a budget shortfall of $18.5 million come July 1, 2011. A shortfall of that magnitude would result in the loss of over 150 positions and the important services provided to the public.
Entire departments and programs could be eliminated. “Preparing for the worst, the City’s Department Heads have worked collectively for weeks to identify the necessary cuts for each department. We are painfully aware that should we be forced to implement the proposed cuts, it will change the face of Chula Vista as we know it,” said Sandoval.
On October 5, staff will present the recommended budget reduction plan at a City Council Workshop. If endorsed by City Council, implementation of the reductions could begin as early as January of 2011. The meeting is scheduled to start at 4 p.m. in City Council Chambers located at 276 Fourth Avenue.
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Posted by Eastlaketimes on Sep 11 2010. Filed under Community of Eastlake. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
Please visit http://chulavistataxpayers.org to learn the TRUTH on Proposition H.
Please vote NO on Proposition H: the utility users tax increase
If Prop H does not pass, almost all of the recreation department community centers will be CLOSED. This means kids on the streets and severe cutbacks to services to the community.