Salinas City Council Holds Study Session About Proposed 2018-19 Budget

On May 29, 2018, the Salinas City Council held a “study session” on its Fiscal Year 2018-19 Operations Budget and its Capital Improvement Program Budget. See video here: Salinas City Council – May 29, 2018 – Study Session on Budgets.

City of Salinas Budget Deficit Outlook 2018-2028
City of Salinas Budget Deficit Outlook 2018-2028 with $106 million cumulative budget deficit.

Some concerns for taxpayers, as stated in the staff report to the city council:

  • “The FY 2018-19 budget is the first year of a series of significant challenging years ahead. The outlook shows healthy resources, however, the trajectory of forecasted expenditures far outpace the revenue growth.”
  • “The City had a $7.4 million deficit going into this budget cycle…”
  • “Two significant fiscal impact items occurred between August 2016 and the February 2017 mid-year review: 1) The Salinas Police Officers Association (SPOA) three year Memorandum of Understanding (MOU) was approved (September 2016; $11.7 million cumulative cost increase over three years) and 2) CalPERS lowered the discount rate (December 2016; $70.9 million cumulative cost increase over 7 years, with the total annual cost almost doubling by the seventh year). The increase in cost from the CalPERS discount rate change and the SPOA MOU is likely the largest single fiscal impact in the City’s history…”
  • “Over the next seven years, although phased in, the impact of the PERS discount rate continues to be a looming tsunami that requires serious planning and rethinking of priorities and service delivery.”

NEWS COVERAGE

Firefighters Ask Council Not to Freeze Two Positions – Salinas Californian – May 29, 2018

Firefighters to be Cut from Salinas Fire Department – KSBW Action News 8 – May 28, 2018

Here are the documents provided to the Salinas City Council at their budget study session:

1. May 29, 2018 Staff Report to Salinas City Council – FY 2018-19 Operating and Capital Improvement Program Budget

2. Proposed FY 2018-19 Operating Budget

3. Proposed FY 2018-19 Capital Improvement Budget

4. Exhibit A – FY 2018-19 Budget Detail – By Department

5. Exhibit B – May 2018 NRN Council Update

6. Exhibit C – City Council Goals and Strategic Plan

7. Exhibit D – Schedule of Vacant Positions Eliminated – FY 2018-19 Budget

8. Exhibit E – Schedule of Vacant Positions Held Vacant – FY 2018-19 Budget

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