Council puts hold on budget vote

By Julie R. Johnson

Staff writer

Waiting for the state to make a budget decision, the Corning City Council is holding off on passing its own budget.

The decision came during a special meeting Tuesday. City Attorney Mike Fitzpatrick told the council it had no legal obligation to adopt the budget by Wednesday, the beginning of the fiscal year.

“Until a city budget is approved, the city is functioning on a spending plan,” Mayor Gary Strack said. “The spending plan will be reviewed monthly by the council until a budget is adopted. There is actually nothing on the state constitution that says a city has to adopt an annual budget, but we do and we will eventually.”

Proposed general fund expenditures for 2009-10 are about $4.47 million and projected revenues total about $3.74 million, creating a shortfall of nearly $732,000, according to City Manager Steve Kimbrough.

“Even if we approved the proposed budget tonight, everything could change based on the state’s budget, and we would probably have to start making amendments to our budget right away,” Kimbrough said Tuesday.

On a 3-1 vote, council members reduced their monthly stipend from $300 to $200, which would save $6,000. Councilman Ross Turner was opposed and John Leach was absent.

But it’s not a done deal. “We may have to take another look at that vote, according to our city attorney,” Strack said Thursday. “We may not be able to decrease the stipend until the next election as we are elected officials.”

In an effort to decrease the deficit, the council directed Kimbrough to begin furlough negotiations with the city employees’ bargaining units. The negotiations will begin next week, he said.

“We expect it will take three to five weeks before we receive an answer,” Kimbrough said. “If the units decline the furloughs, we will probably be left with no option but layoffs.”

Kimbrough said furloughs amounting to 10 percent of each employee’s salary would need to begin in October to effectively impact the deficit.

“Our objective is to reduce the $732,000 shortfall in revenue to a manageable amount while leaving all of the operating reserve intact, and keep some of the available reserve in the b  ank for emergencies,” he said.

A nine-month period of employee furloughs is expected to save the city $213,650, according to Kimbrough.

Other proposed options include dipping into the city’s $600,000 in available reserves; reducing funding to the Chamber of Commerce and Tehama County Economic Development Corp.; and moving the Police Activity League to the Transportation Center.

Contact Julie R. Johnson at 824-5464 or jjohnson@tcnpress.com.