PLEASANTON — Over the next several months, the Pleasanton City Council will be laser-focused on fixing one thing: the city’s budget.
“We need to come up with a longterm solution to address our financial challenges,” Susan Hsieh, Pleasanton’s Financial Director, told the council during Thursday night’s budget workshop.
The council in the first few months of this year will decide how to attack an estimated $100 million deficit over the next eight years. The looming budget crisis comes in the wake of a half-cent tax measure’s failure in the November election, which if passed by voters would have softened the blow of the expected financial hardships to come.
With Pleasanton’s financial future teetering on crisis, Mayor Jack Balch on Thursday wanted the city to consider that it may not be in such dire condition.
“We do need to rebuild trust. We do need to reconcile with the community. We do need to heal,” Balch told the council. “I think we’re all trying to do that tonight.”
Balch, supported by new Councilmember Matt Gaidos, suggested the city hire an outside consultant to re-evaluate the city’s financial condition. The City Council then voted 4-1 to hire a consultant and add another two workshops to discuss key decisions regarding the $239 million operating budget.
Gaidos quipped about how the council decided to “spend some more money to figure out how we’re not going to spend more money.”
“I want everyone in this room to remember the irony of this moment,” he said.
City Manager Gerry Beaudin has prepared the city for scenarios such as an economic recession in the near future, which could mean the city loses anywhere from $13 million to $22 million annually. But the mayor is not convinced things will get that bad.
It is unclear how much the consultants will cost, but the city is required to consider bids from at least three contractors before deciding a best option, according to City Attorney Daniel Sodergren.
The council Thursday also voted unanimously to convene a budget advisory committee of 11 members, which includes appointments from all councilmembers and two from Beaudin’s office. The committee will advise the council on how to deal with its financial future until it comes up with an official plan this summer.
Vice Mayor Jeff Nibert on Thursday mentioned the city will be “in a world of hurt” if it doesn’t figure out how to address the imminent threat of the $200 million in unfunded pension liabilities over the next several years. Beaudin said that the city could wait to deal with that issue after it sets a more pressing two-year budget plan by June.
As far as what the city will have to cut, Nibert added that “I believe every department in the organization needs to have skin in the game.”
The city is considering cutting over $8 million in funding throughout several departments, including fire, libraries, crossing guards, parks and recreation and more. When asked by this news organization her thoughts on the possible $1.35 million in cuts to police services, police Chief Tracy Avelar was unsure of what the future could hold.
“I don’t think we know what is going to happen. I just don’t know the impact,” Avelar said in an interview. “It’s too early. Nothing is set in stone.”