What to Expect at Tuesday Night's City Council Meeting: Budget, Library

The City Council will tackle two significant issues at Tuesday night's meeting. It will discuss whether to support a study exploring alternatives to being a part of the Santa Clara County Library District, and it will vote on the 2011-2013 biennial budget.

The former stems from an April decision of the Joint Powers Authority, which governs the Santa Clara County Library District, to charge $80 to anyone who is not a resident of one of the member cities.

The North County Library Authority, which raises parcel tax funds to enhance the  hours and materials available at the Los Altos Library and Woodland Library, would pay for the study. The Los Altos Hills Town Council endorsed the proposal at its last meeting.

The study would explore the feasibility of alternatives to membership in the county library district, which despite its name, does not include all cities in the county. Mountain View and Palo Alto, for example, are not members of the district, and its residents will be charged $80 for a library card begining July 1 if they wish to check out materials from the Los Altos Library.

The budget looks like a much easier discussion.

The City Council is poised to adopt a two-year budget and capital improvement plan on Tuesday night, the first time since the economic crisis it has done so.

The biennial budgetary and Capital Improvement Projects (CIP) plan of $38.4 million for the 2011-2012 fiscal year and $39.9 million for 2012-2013.

The return to a biennial budget, Mayor Ron Packard had told business leaders during the May 19 State of the City address, that the city had returned to a level of stability to allow longer window of planning. 

"I think we've weathered that storm," said Finance Director Russ Morreale. The city put the biennial budgets on hold because of the economic climate." The return was possible now, he said, "because it's more feasible and appropriate."

The complete draft budget is on the city's website.

City Manager Doug Schmitz and Finance Director Russ Morreale first presented the  budget at the June 7 budget workshop session for council members. The budget will be voted on in a series of nine resolutions.

The most significant feature this year is pension reform, an urgent issue for virtually every municipality in the country.

As expected, rises in the California Public Employees’ Retirement System (PERS) rate the reflect some hefty increases. Five percent for the police department, and 3 percent for various city  departments will mean a $550,000 increase in expenditures, Morreale said.

Costs for PERS, health benefits and the Santa Clara County Fire Department service contract, indeed, is 75 percent of the general operating fund increases.

The city negotiated new agreements to help address costs with the two labor groups, representing public safety and Local 350 Teamsters, but affecting all 130 city employees Morreale said.

The city came to an agreement for a two-tier pension system for new employees  and implementing a phase-in of employees contributing to their pensions, as well. The city will contribute less and employees more toward their retirement funds, effective 2011-2012.

"It's responsive to a move that many cities and counties are making to control costs," Morreale said.

The slowly improving economy is reflected in general-fund revenues projected to  increase 3.09 percent to approximately $28.6 million for 2011-2012. This includes 73 percent from taxes.

Public safety comprises the biggest chunk of expenditures, 50 percent; maintenance 15 percent; and community development, 14 percent.

The city clerk’s position has been shifted to an interim part-time job. The city is recruiting for three positions, a building inspector, a transportation manager, and a new economic development manager.

The city proposes sending $3.6 million on approved capital projects during 2011-2012. The Capital Improvement Program (CIP) is expressed in a multi-year forecast until 2015, though the council decides the appropriation level each year, Morreale said.

A multiyear budgetary plan will not require the traditional approval process next year, Schmitz said. Only nominal adjustments reflecting changed information or circumstances will be proposed in June 2012 when the second year begins.

If you can't go to the City Council meeting, remember, you can always watch from the comfort of your own home via streaming video online.