City manager Debra Figone didn’t let the police get the last word of the fiscal year regarding contentious labor negotiations and first layoffs of officers for the first time in the city’s history. On Thursday, she sent a memo to the mayor and city council countering an op-ed written by Police Officers Association president George Beattie, which blamed city officials for the layoffs of 70 officers.

Running a deficit for the 10th straight year, San Jose was forced to cut $115 million through a mix of program cuts, layoffs and salary and benefit reductions. It’s no surprise then that public employee morale, according to a just-released survey, has dropped dramatically compared to pre-recession survey in 2006.

It’s the final day of the fiscal year, which means many people who work for the county and city will be out of a job starting tomorrow. It also means lawsuits are on the way.

After a week of tension as members of the San Jose Police Officers Association voted to accept or decline cuts in pay, benefits and retirement—and in effect save the jobs of 156 officers, San Jose cops agreed to concessions by a 674-429 vote. The City Council unanimously approved the terms of the agreement on Tuesday. However, roughly 100 officers are still expected to be laid off.

The City Council will convene as usual Tuesday, but the meeting is expected to start earlier than 1:30pm—possibly before noon—because of the numerous items on the agenda. The most notable issue at hand will be finalizing the mayor’s budget message for approval at the June 21 session. Memos from several councilmembers will likely cause quite a debate.

Last week, the Council emerged out of closed session directing staff to communicate and negotiate with the unions regarding the possibility of a ballot measure and pension reform. The goal is to combine these two topics and create/work within a timeframe if possible.

On Friday, Mayor Chuck Reed released his June Budget Message, which included his final recommendations for closing the City of San Jose’s $115 million budget deficit in the upcoming fiscal year and preliminary strategies designed to avoid further service cuts in 2012.

Last week I featured some of the budget memos I submitted to the mayor. Here are the rest that I submitted. Budget memos are only allowed to be signed by one councilmember. Doing things differently in some areas means we can spend more in other areas.

Just when it looked like all hope was lost for the city and the police union to come to an agreement in negotiations over pay cuts and pension reform, a tentative deal was reached Thursday night.

The gloves have officially come off in labor negotiations between the city and public employee unions, and whispers of potential strikes are being heard in certain City Hall corners. On Tuesday, the City Council imposed 10 percent cuts in total compensation for four unions by an 8-3 vote. The cuts in pay and benefits will affect more than half of the city of San Jose’s employees.

It’s not that Debra Figone doesn’t trust the city council to spend money—it’s just that she doesn’t trust the city council to spend money wisely. Rather than let the council decide whether San Jose should accept a federal grant that could have saved 53 police officer jobs—and potentially put the city on the hook for millions it doesn’t have—the city manager chose to protect the council from itself.

Last week was the deadline for councilmembers to submit their input in writing to the mayor. Budget memos are only allowed to be signed by one councilmember. Here are some of the budget memos I submitted.

City Manager Debra Figone passed on applying for a grant that would have saved the jobs of more than a few dozen San Jose police officers but included some significant costs. Members of the Police Officers Association were surprised by the move, and they weren’t the only ones. It seems Figone did not consult the City Council on her decision to pass on applying for the largest possible grant.

As city staff studies a number of proposals on how to fix San Jose’s budget crisis, one idea in particular is likely to have some local business owners up in arms. Councilmember Nancy Pyle submitted a memo at Tuesday’s council meeting that recommends modifying the business tax for establishments that offer services. These businesses are taxed by the number of employees they have rather than sales.

“We must stop this death spiral of increasing pension costs and decreasing numbers of employees,” wrote Councilmembers Nguyen and Herrera in an op-ed published last week by the Mercury News. Nguyen and Herrera explained their reasons for supporting Mayor Reed’s push to confront the city’s runaway pension problem. In terms of the pension problem, the residents of San Jose also get it.

Harry Mavrogenes made the surprising announcement Thursday that he will relinquish his role as Executive Director of the San Jose Redevelopment Agency as of June 24. Mavrogenes has held the title since late 2004.