With a fast-plunging pool of money from sales and property taxes, Tracy plans to use $7.4 million in reserves to plug an ongoing budget deficit it hopes to permanently close with spending cuts and increases in revenue.
City staff propose a $160.8 million budget for the fiscal year that starts July 1, including a $53.8 million general fund, the cash that Tracy uses to pay the bulk of its 535 employees.
Its reserves that once stood at $38.7 million will be down to $25 million by mid-2010, and if the city fails to find ways to spend less and bring in more money, “within two years, we are out of reserves completely,” said Zane Johnston, the city’s finance director.
To make sure that doesn’t happen, it seems that everyone will share the pain. The city is negotiating successfully with its workers to get them to voluntarily cut their pay, accept unpaid days off, and contribute more to their retirement and other benefit packages.
The council on Tuesday eliminated its policy that stated it would have no layoffs by fiscal year 2012-13.
The city’s revenues in sales and property taxes are expected to be about $41 million in fiscal 2009-10 — less than what they were in 2006, when Tracy had about 500 employees.
While employees are willing to make concessions to contracts that have yet to run their course, many are worried that job cuts might be the next logical move to reduce the city’s budget.
“Layoffs should not be the No. 1 thing on the list,” said David Stowe, a public works employee. “It should be the last option.”
The council agreed, but voted to use layoffs as a tool to get a balanced budget if it has to.
“It’s absolutely the last option,” said Mayor Brent Ives.
Other measures the council might consider by 2011-12 — if the economy fails to turn around — include ending the $1 million year Tracy spends to help kids and their families as part of the Mayor’s Community Youth Support Network.
The city might also have a nonprofit run the Grand Theatre Center for the Arts, a move that city officials say would save $1 million in general fund subsidies.
And it could consider asking voters to pass a parcel tax of $150 to pay for police and firefighters.
But the council was not yet ready to OK fire department fees that people in Tracy would pay when residents call for a paramedic.
City consultant Management Partners suggested Tracy do as some other California cities do and charge people for medical call service.
The firm advised the city charge $300 for medical calls, recover the cost when firefighters go to car crashes, about $350, and charge other fees for paramedics.
But the council had too many questions about how the fee would be run and how fair it is, since only people within the city limits would pay for paramedics, though they also serve people who live outside of Tracy, such as Mountain House residents.
However, the council will get a closer look at those proposed fire fees at a later date.
Had always wondered who lived in those homes and what the famil history was like, did they see the flu of 1918? Changes along the rail, what was once a brothel along the line is now?
I hope one will look into the histories of these homes before blindly tearing them down?
"Why use this guy, Police spokesman Sgt. Tony Sheneman when we have Matt Robinson."
Well fer one, one is an actual cop that probably has more information than Matt and is savy enough not to leak out things that shouldn't be leaked. Two, Matt might not have been around at the time.
Don't know if I'd cotton to losing vacation and holiday time if I didn't cause the problem but was just yer average Joe tryin to make a livin.
Course ya gotta do what ya gotta do but dontcha think that cuts might be made elsewhere in the budget that wouldn't affect yer personal life?
Apparently a lot of people are of the notion that city workers don't do anythin and just soak up their pay. Yep, some probably do, but they are probably in the minority an I don't see a lot of people rushin up to get those jobs.
Don't think I'd want to do it and then take the heat when people complain. An it don't seem that everyone is complainin.
Looks like a no win thing ta me. No matter what ya do, sure nuf, someones gonna complain about it.
On Trader Joes an Sizzler. Never much cared for Sizzler as a good steak house. But I gotta admit, that's probably cus I can cook up a steer an have it come out mighty tasty and better than ya can get almost anywhere.
With Trader Joes, it's thair business an thair money. I got no right to tell em how to run it unless I own part of it an I don't.
Don't think ya would cotton much for me to be tellin ya how to run yer business if I wasn't a part owner. Come to think of it, ya probably wouldn't like that much either.
Point is, if ya think ya can give Trader Joes a run for thair money, go fer it, its still a free country an ya can spend yer money the way ya want as long as its legal.
Been in the county for a long time now. It looks to me, other than Discovery Bay and now Mountain House that Tracy is one of the upscale communities in the county. So it would seem to make sense to this ole boy that it would be a little more expensive for businesses to do thair business here.
Now if ya want to help the city trim thair budget, one of the first things I'd get rid of is all them infernal consultant dudes.
Sometimes ya need them but most of the time ya got the expertise already workin for ya and ya are just wastin yer money on someone else's notion.
If yer people can't do the job then ya need to either get them trained so they can or get rid of em and hire someone who can.
Never quite understood why ya needed someone ta tell ya stuff even an ole dude like me already knows.
Guess the City an the local government use these guys so that if it don't turn out they have a way to dodge the finger pointin. Might work once or even twice but sooner or later ya got to face the heat yerself.
Well it's time fer a nap, be back later.
Good to see that Trader Joes is sending their flyers, in the mail, to their "clientelle" in Tracy, CA.
Thanks!
Anyway, two thoughts. Why use this guy, Police spokesman Sgt. Tony Sheneman when we have Matt Robinson. I haven't seen him lately, What is his job description?
Also another idea, as I said before, Lower vacation from 3 weeks to 1 week, paid holiday from 12 a year to 6.
I would think businesses would be more concerned with quality than you think. Have you been to the Chamber of Commerce recently? I think you will be in for a surprise with what's going on in Tracy?
Did you tell Trader Joe that while they are waiting for the population to increase in Tracy, CA... that their "clientelle" (from Tracy) has to travel to their stores in Stockton and Livermore.
Isn't Trader Joe's telling you they are inconvenciencing their "clientelle"?
I didn't read the Sizzler article. Are you sure there wasn't more? Can you post the reference to the article that you mentioned?
What are your suggestins to fix the problem? Spend zero? I'm just a 25 year Tracy citizen who cares.
Was told the same thing, but thought the clientele base was fine, but wondered if the number of foreclosed homes in Tracy, and the pretty lousy reputation that finds its way to media could have any bearing on their decision?
I am not convinced it was the "clientele" they were using as an "excuse".
It wasn't a problem for me since I shop in Modesto, when working in Modesto in the past, but for locals, who just wants to shop in Tracy ought to have the opportunity?
I really think the economy has bearings on their decision for now?
I think Sizzler would have done good in Tracy. Decent pricing/food especially with today's economic problems.
Government - Civic agency - Time is space and they collect a check no matter what - Wasting the time of private tax payers/business does not matter to them.
Business could give a rats a-- what stupid so called standards the civic government has. If your project gets held up at the city level and costs four times as much to do in Tracy...Smart business moves on.
Practical dollars and cents - The cost of doing business and the time it takes to complete is what makes the city of Tracy - Voidable/Void!
I don't know if that is a correct statement to make "Tracy is also has the hardest city officials to deal with." but I think the standards are high here in Tracy which to me is a GOOD thing. Personally, I'm glad Sizzlers didn't open up, I just don't like that restaurant, but I am glad Raley's is finally being built south of Tracy as well as other stores! Now, all they need to have is Trader Joe's open up and I'm set.
I think I've read somewhere that Tracy is the most expensive city in San Joaquin County to do business with. I believe, in the same article, it said Tracy is also has the hardest city officials to deal with.
I think business can survive in Tracy if city officials let the businesses run their business and let the city officials run the city.
For example, and correct me if I'm wrong, but when I first moved to Tracy I was told Sizzler was planning on putting a restaurant in town. Sizzler officials had drawings presented to the city and the city sent the drawings back saying they wanted the "dumpster" on the other side of the building. For Sizzler to completely redesign the parking lot/restaurant to appease the city would cause a longer delay than they had planned and cost them again to have redesigned plans drawn up. Sizzler pulled the plug and backed out.
but, one comment, below, I don't understand...
for the blogger known as "why?"
You said that the city is the most expensive place to do business.
I heard that the county was more difficult to do business? Are you saying it is the other way around?
I also understand that it is quite less expensive to do business here, in Tracy than in cities to the West. Is that because it gets more expensive as you move West?
You must be a civic employee..
I do care how my Tax dollar is spent. Only a civic government expects to spend, spend and spend some more. After all, it is not their money they are spending!
If you dont care if they spend your money, that is your problem. I do care how they spend my TAX dollar! Bloated civic government will be a thing of the past!
Time to reduce government at all levels. Start from the top. They are not immune to living within their means. It is a foreign concept for our elected leaders and the city manager!
Does Manteca have "Restrictive" growth in place that would restrict the chance for increasing number customer for any businesses?
Have you considered moving to Manteca? You are right Tracy needs to make it affordable for businesses to operate here. You are wrong about businesses having "no interest in Tracy.". I don't care if they spend all of our money as long as they have revenue generating in mind. Don't throw good money after bad like in the Grand Theater.