News Release
June 24, 2010
Concord passes budget, makes progress in closing $13 million deficit
The Concord City Council passed the 2010-11 General Fund budget Tuesday night, June 22, moving one step closer to closing the City's $13 million budget deficit.
The budget includes cuts of $5.6 million in City services, and $2.1 million in wage and compensation concessions from employee groups for a total of $7.7 million in reductions.
The majority of employee savings, $1.7 million, comes from police unions.
"We are celebrating this shared victory as a significant step toward closing the City's $13 million budget deficit," said Mayor Bjerke.
"Our contracts with the police unions don't expire until July 2011, but the police officers and managers voluntarily stepped up to help the City balance its budget," said Bjerke. "Their willingness to partner with the City shows how dedicated our officers are to the well-being of the residents in our community."
Under the agreement, sworn officers and managers will still receive the 5 percent pay raise their current contract entitles them to over the next year, but will give it back by paying 5 percent of their salaries towards retirement costs, relieving the City of this burden.
Additionally they will pay 50 percent of all health care increases beginning in January 2011 and have agreed to go three years with no raises. The revised contract will expire in January 2014. This new agreement effects 151 of Concord's 400 employees.
Additionally, the City has come to terms with members of Local 29 and with its non-represented employees, for an additional $415,000 in savings per year, resulting in a total annual savings of $2.1 million. Last year, non-sworn employees gave up salary and benefits totaling $1.5 million, which will continue.
Office and Professional Employees International Union (OPEIU) Local 29, which represents 21 City employees, has agreed to continue last year's 5 percent pay cut through furlough days, forego raises and freeze step increases the first year of the agreement, and put 5 percent of their salaries towards retirement costs. Future step increases or salary range adjustments will be subject to work performance and budget availability. They too have agreed to pick up 50 percent of all future health insurance increases. Their contract will expire in July 2012. These pay and benefit reductions will save the City $115,000 per year in addition to the ongoing savings of $145,000 from last years' concessions.
The City's non-represented management and confidential employees, whose pay and benefits were reduced from between 5 and 12 percent in 2009, will see no salary increases, will begin paying 5 percent of their salaries towards retirement costs, and will also pay 50 percent of all future health insurance increases. There are 59 employees in this group, and they will be helping the City close the budget deficit by $300,000 per year in addition to the ongoing savings of about $600,000 from last years' concessions.
The City is still in negotiations with Local 1, the union representing Administrative, Technical & Clerical (ATC) and Field and Operation (F&O) employees.
While these concessions represent a significant step in reducing the City's budget deficit, they will not completely close the gap. Reductions in sales tax and property tax revenues as well as $33 million in State take-aways over the last 10 years, have eroded the City's General Fund and created a structural deficit. In spite of the $18 million in reductions that have been made over the last two years, the City will still need to find $5.3 million in service cuts or additional revenue to achieve a balanced budget that does not rely on reserves.
For more information about the City's budget, visit www.cityofconcord.org or contact the City Manager's office, (925) 671-3150.