negotiations to minimize impacts and explore creative solutions such as incentivizing
early retirements. Retirement is budgeted at $16 million, and DPW at $9.5 million. The
DPW budget includes appropriations for snow removal, with $200,000 for annual
expenses and $800,000 for prior year deficits due to heavy storms.
The internal team, with input from department heads and analysis of vacant positions,
arrived at layoff proposals by matching budget constraints with operational needs. The
process was not exact, and efforts were made to minimize layoffs by collapsing
responsibilities and targeting vacancies. Negotiations with Teamsters Local 25 began to
address the impact of layoffs, including bumping rights based on seniority and
qualifications. The union is holding meetings to determine which members may be
interested in bumping into less senior positions. The fire department has been proactive
in seeking creative solutions to avoid layoffs, such as incentivizing early retirements.
Each union negotiation is unique, but the shared goal is to prevent physical layoffs while
achieving necessary budget savings. Four cadets are slated for potential layoffs, with
one vacancy unfilled. Cadets are part of Local 25 and may exercise bumping rights if
qualified. The police chief confirmed that cadet functions can be absorbed by patrol
officers without additional overtime costs. The budget proposes 17 general government
layoffs, including both open positions and current staff. Vacancies such as the DPW
director and a clerk in the assessor's office are targeted for elimination, with further
details to be provided via email. The FY2027 budget includes a proposed 0% cost of
living adjustment for all bargaining units, with the intention to negotiate this with unions.
Employees with unsettled contracts for FY2025 and FY2026 will be made whole, but no
incremental increases are budgeted for FY2027. Salary reserves in the controller's office
budget are set aside for unsettled contracts from FY2025 and FY2026. Departmental
salary budgets include funds for signed contracts, ensuring that any agreed-upon
increases are already built into departmental allocations. If unions reach impasse, such
as police and fire, arbitration may result in mandated increases. The city would then need
to decide whether to fund those increases or make additional cuts to accommodate
them. The House budget increased Chapter 70 funds by $567,000 but decreased
charter tuition reimbursement and unrestricted local aid, resulting in a net cut of $93,000.
The Senate is expected to restore and possibly increase unrestricted local aid, but the
final impact remains uncertain.
Questions were raised about declining student enrollment and its effect on funding.
FY2027 estimates are based on prior year enrollment, with the October count
determining future allocations. The school department will provide more detailed
demographic and enrollment data when available.
The House budget included a proposed reserve for districts losing English language
learners, but this is not reflected in the Senate budget. The team confirmed that current
revenue estimates do not account for this potential reserve.
Councillor Luong asked when are the trash contracts up
Chuck said in 5 years
Councillor McDonald said from the Chair we will hear from the departments about the
impacts of the cuts to their individual budgets and asked Chuck if there is anything he
wanted to say about how you arrived at the at the layoff proposals that are included in
this budget? Like, did you ask departments to give us recommendations and then go
from there? We will get their perspectives but asked if there is anything you want to say
about your perspective about how you arrive at this set of 17 general government layoffs
on top of the police requirement.
Mayor Christenson I think the best way to describe it is that it was not an exact science
you had our internal team. You had the numbers that you're dealing with from the
