Last week the council took up the firefighters union contract with more than 100 firefighters in attendance. I thought I would share why I voted no. First, I think it is clear that if you have worked in city government over the years that things are drastically changing due to structural budget deficits. Second, if you are new to working in city government, you will most likely not have the same career as those before you.
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City Approves Bond Financing for Convention Center
The San Jose McEnery Convention Center is in dire need of an upgrade to avoid losing business to rival venues in San Francisco and Santa Clara. The cost of just the most urgent improvement is $26.5 million. It’s money that the city doesn’t have—what the city does have is a $105 million deficit. On the other hand, the Convention Center brings in about $12.5 million to Downtown businesses, and this could be lost if no upgrade takes place.
An Interview with Mayor Chuck Reed
The mayor on libraries and community centers vs. SJPD’s retirement benefits, the problems with contracting out city services, the grounding of the police chopper, and the importance of citizen involvement.
Mayor Reed Repeats Budget Warnings to Wall Street Journal
Mayor Chuck Reed sat down with the Wall Street Journal for a Q&A article published today, and the responses were strikingly similar to the State of the City Address he delivered last Thursday.
Mayor Chuck Reed’s 2011 State of the City Address
Most of Mayor Chuck Reed’s State of the City Address, delivered at the Civic Center this evening, dealt—in sometimes painful detail—with the budget mess that the mayor has been forced to deal with since he took office.
He began by defending the city’s Redevelopment Agency, which, like RDA’s throughout the state, is under attack from Sacramento.
Should California End Redevelopment Agencies?
Last week, RDA director Harry Mavrogenes and the San Jose City Council said they would work to keep the Redevelopment Agency going despite Gov. Jerry Brown’s intention to shut down agencies statewide.
An article in the Mercury News closed with the following paragraph: “The governor’s finance office said Brown has not wavered on his position and cited a study released Tuesday by the state’s Legislative Analyst’s Office. The report offers support for Brown’s plan to eliminate the agencies and replace them with other ‘tools to finance economic development.’”
2011 Community Budget Survey Results
As you may remember, two weeks ago I shared that the City of San Jose contracted with a public opinion organization to conduct a telephone poll of 1,000 residents. These residents were asked survey questions from Jan. 13 to Jan .17. In comparison to my web survey, the City did a “scientific survey” which means they called men and women from all council districts, different age groups, ethnically diverse, homeowners and renters who are likely voters. The company responsible is instructed to get a group that mirrors San Jose.
How Many Homes Does it Take to Fund a City Service?
It is pretty common to hear from residents, when discussing our City budget: “But i pay my property taxes.” As I have covered before on a prior blog post, your property tax bill does not flow 100 percent to the City. Much of it is taken by the school districts, County, community colleges and special districts. (This does not include various parcel taxes, school bonds, hospital bonds, that are collected via your property tax bill.) Even with all these other government entities taking nearly 90 percent of your property tax, this remaining portion is the number-one source of revenue, by a large measure, for the City of San Jose.
Unexpected Support for the Plan to Sell Hayes Mansion
Last week, I got a mailer from the No on V campaign railing against the decisions of past city councils about spending on the Hayes Mansion. I was elated! I felt validated in my support for selling the Hayes Mansion to stop the annual bleeding of millions of dollars. I wrote about selling the Hayes Mansion two years ago on the Council and on this blog.
High Speed Revenue
For the most part, I do not think people want things to change. However, could you see living without highway 280, 85, 87 or 237? When building large transportation projects there always seems to be opposition of some sort. Government at all levels—local, state and federal—deems that certain projects have a higher value in the long term.
Pension Reform: Speak Now or Forever Hold Your Peace
The Rules Committee allowed my memo on Pension Reform to go before the City Council Tuesday, Aug. 3, to be considered as a ballot measure for San Jose voters this November. At the Rules Committee meeting, members of the public were few compared to the number of paid lobbyists that were in the audience.
Potential City Ballot Measures
On Tuesday, Aug. 3, the City Council will decide on five possible ballot measures that would go before San Jose voters in November. So far, the Council has budgeted money to place two items on the ballot; therefore the council must choose two of the five. However a group known as Baseball San Jose has offered to pay for the cost of putting the Downtown Baseball Stadium question on the ballot, so three ballot measure may go before voters.
Pension Reform Now!
My memo below will be discussed, next Wednesday, July 28 at 2pm at the Rules Committee which includes Mayor Reed, Vice-Mayor Judy Chirco, Councilmember Nancy Pyle and Councilmember Pete Constant. This is a public meeting.
Recommendation
Direct City Attorney to prepare legally binding ballot language for a ballot measure to be considered at the August 3, 2010 Council meeting for the November 2010 election allowing residents of San Jose to vote on changing the City charter by removing charter language regarding “minimum benefit” and “contributions/ cost sharing” in regards to pensions (Sections 1504 and 1505). Removing this language would allow the flexibility to negotiate a 2nd Tier pension for new employees whose hiring date is after January 1, 2011. This proposal would not change current legally vested benefits for existing employees.
Prioritizing Services That Touch Residents
Hope your Fourth of July holiday was fantastic. On June 29, prior to the holiday the Council made the final vote for a balanced budget. More than 20 people spoke at the Council meeting and all but one advocated that the Council not outsource janitorial services but rather keep the janitorial staff employed, since they provide an incredibly valuable service. You would have thought janitorial was listed in the city charter by the speakers’ comments.
Support Our Mayor
It is the City of San Jose’s process that City Manager Debra Figone puts forth a budget proposal in May. Then, after that is released, councilmembers make their budget proposals to Mayor Chuck Reed.
When the Councilmembers make written suggestions of their “budget wants,” they also need to include what funding source within the city will be affected (some written suggestions from councilmembers are done in collaboration with labor unions).
Then, the Mayor takes into consideration the City Manager’s budget proposal and the Councilmember’s suggestions, and comes up with a final budget.
Of course, a mayor could put together their own budget without this input, but it is customary that the mayor takes other perspectives into consideration.
Reed Responds to Grand Jury Report on Employee Costs
The 2009-2010 Santa Clara County Civil Grand Jury today released a 33-page report titled Cities Must Rein in Unsustainable Employee Costs that says, “Employee costs are escalating in the cities of Santa Clara County, revenues are not keeping pace with these increases and cities are cutting services.” The Grand Jury looked at rising wages, health insurance, pensions, and vacation, holiday, and sick leave and made recommendations to control costs.
