City Manager Debra Figone released her 2013-14 budget proposal, which was balanced, she says, through fiscal reforms, layoffs and switching to cheaper retiree healthcare. Still, the city remains in “a fragile situation,” partly because of litigation it faces over Measure B pension reforms.

County ambulance provider Rural Metro missed its monthly response times for emergencies in Sunnyvale all but once during a 17-month period ending Novemebr 2012, according to internal documents. This and other system failures have placed the company’s contract in jeopardy.

Should it be easier to impose new taxes? Or is it a recipe to tax fatigue, given the voting public’s recent support for a water district parcel tax, county sales tax and Prop. 30 for school funding? This and other matters go before the Rules and Open Government Committee on Wednesday.

San Jose’s police union filed a lawsuit challenging the city’s authority to impose pension reform. The complaint was filed Monday, a little more than a week after Attorney General Kamala Harris agreed to let the Police Officers Association file for a judicial review.

Despite an uptick in crime and a top brass changing of the guard, fewer people logged complaints against the San Jose Police Department in 2012 compared to previous years. There was a 7-percent drop in citizen complaints last year, according to an annual report by the Independent Police Auditor’s office, which is on the agenda for Tuesday’s City Council meeting. Other items on the agenda include additional expenses for the Environmental Innovation Center project.

A fake crime lab report that already cost the city of San Jose years of court battles and lost time will now take $150,000 to settle. San Jose will likely use cash from its liability claims reserve fund to pay off Michael Kerkeles, who in 2005 was accused of raping a mentally disabled woman with the cognitive capacity of an 8-year-old.

UPDATE: The city of San Jose came to an agreement on tier-2 retirement benefits with the POlice Officers Association on Thursday afternoon, avoiding Friday’s arbitration hearing.

San Jose faces a $2.9 billion unfunded liability in pension and retiree healthcare costs. The figure is mind-boggling. The city still has to figure out how to afford those unfunded obligations. But that’s another story for another time. On Friday morning, the public—for the first time—will have a chance to sit in on arbitration hearings that have been held previously behind closed doors, when the city negotiators sits across the table from San Jose’s police union.

San Jose’s top casino cop has had enough. In his first interview since Casino M8trix filed lawsuits in February against the city of San Jose, Richard Teng, the San Jose Police Department’s gaming administrator, called accusations against him “a political nightmare.” There is history in this dispute.

Enough people have complained to the city about drop-off containers for used clothing, mostly in grocery story parking lots, as being magnets for graffiti and trash, that San Jose’s Planning Commission agreed earlier this year to do something. But some people suspect this is part of a larger strategy by Goodwill Industries, Inc. to put up a little more red tape for companies that own the scattered-about donation boxes. A proposed ordinance is criticized in a letter submitted to the public record for Wednesday’s Rules and Open Government Committee.

At least five mentally ill patients from a Nevada psychiatric hospital took a one-way ticket to San Jose, arriving homeless and un-medicated at the Greyhound Bus Station in downtown. That’s according to a series of disturbing reports this week by the Sacramento Bee, which investigated Rawson-Neal Psychiatric Hospital’s apparent practice of “patient dumping.” The state-run mental health hospital in Nevada reportedly bused out more than 1,500 patients to various major cities across the country during the past five years, according to records of Greyhound bus ticket purchases reviewed by the newspaper.

City officials admit that San Jose’s IT department tails behind other Silicon Valley municipalities, and to change that they want a new department head. In questions geared toward candidates applying for the role of chief information officer, the City Council asks how the applicants plan to make San Jose more competitive and how to improve data access to the public. Other items on Tuesday’s San Jose City Council agenda include a $10 million airport taxiway proposal, a resolution supporting a ban of flavored tobacco sales in San Jose and a possible bump in fees for developers.

The number of sexual abuse cases involving kids behind bars nearly doubled last year when compared to 2011. The disturbing increase occurred in spite of declining populations at Santa Clara County Juvenile Hall and William F. James Ranch. A report on sexual assaults involving incarcerated youth will go before the Santa Clara County Board of Supervisors on Tuesday. Also on the agenda are a number of health and public safety contracts up for renewal.

The city needs civic-minded volunteers to sign up for openings on various boards and commissions that advise the City Council on everything from the airport to public art and historical landmarks. Here’s a list of the openings.

School suspensions go beyond just quick-fix discipline to get an unruly student out of the way. Statistics show that suspensions can lead to to a number of dangerous paths in life. The Santa Clara County Board of Education will hear a report about suspensions at its meeting Wednesday night, as well as an ongoing fight involving Bullis Charter School.

Councilman Pierluigi Oliverio proposes pushing back the City Council’s start times to 4:30pm, at least, while still keeping meetings on Tuesdays. His plan goes before the Rules and Open Government Committee today. Other items include a review of the city auditor’s contract and an odd letter from City Hall gadfly David Wall about Councilman Pete Constant.

After a lengthy delay in opening last year, owners of Casino M8trix sued the city of San Jose, citing “a long history of unlawful, harassing and malicious conduct” by city gaming administrator Richard Teng. Teng rejected any conflict-of-interest claims in sworn testimony last December. Now, newly filed documents obtained by San Jose Inside show that the city of San Jose’s top casino watchdog repeatedly filed false statements over the course of a decade, while under penalty of perjury.