City Council Adopts Budget

After three-and-a half hours of discussion, deliberation and public comment and one failed vote, the Benicia City Council adopted a two-year budget that will be balanced as long as revenues come in as expected.  cast the only vote against the budget.

The budget will have a full 20 percent reserve at the end of the 2012/2013 fiscal year and includes repayment of a loan from the waste-water fund as well as requirements that city staff develop contingency plans in the next 90 days showing how the city will react if revenues fall short of expectations.

Staff also has been directed to look for ways to backfill some of the cuts that have been made over the past year.  told the council the final numbers for the 2011 fiscal year that ends Thursday at midnight won't be ready for about 90 days.

Another task included in the resolution adopting the budget was a direction to staff to work closely with representatives from Human Services, the Arsenal Swim Club and other pool users, and the Arts and Culture Commission over the next 90 days in an attempt to fully fund programs and services associated with each group.

"A lot has to do with how we end the year," Kilger said after the meeting, referring to the likelihood of finding the extra money. "That's why the 90 days is so important."

The Arsenal Swim Club is trying to raise $30,000 so can stay open in October and November; the Arts and Culture Commission is responsible for funding arts programs throughout the city, including and Human Services is looking for $4,300 so the can stay open five days a week.

Passage of the budget required a four-fifths super majority because the proposed spending plan fails to achieve a mandated 20 percent reserve until the second year of the cycle when the second of two $1 million payments from the/Good Neighbor Steering Committee will be made.

The newly adopted budget also assumes city employee groups will accept a 6.86 percent pay cut.  This was an area in which Schwartzman voiced concern, saying it is difficult to look for money for the pool when the city is asking all employees to take pay cuts. 

After the meeting, explained why he took so long to cast his vote once the roll call was underway. "Alan's right, we've got to look the employees in the eye when we're asking them to take pay cuts," he said. "It's a slippery slope when we become advocates for individual groups when we are supposed to represent the whole community."

During discussion and deliberation, Schwartzman said he wouldn't vote for a budget that took money out of the inter-modal fund to use in other areas. It quickly became obvious that he would vote "no" — and and all had plans for the money from that fund.

Ioakimedes also said he was uncomfortable taking money from the inter-modal fund and added language to the budget specifying the money should be treated as a loan from the fund.  With that language change, the mayor suggested that $400,000 from the inter-modal fund be loaned to the Internal Service Funds so the city could avoid deferring maintenance and an additional $400,000 loan be used to invest in infrastructure improvements in the Industrial Park to entice firms to move to Benicia and to ensure existing firms stay here.