PREPARED BY: REINA SCHWARTZ DATE OF MEETING: 06/01/20
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING AN EMPLOYEE VOLUNTARY SEPARATION PROGRAM TO ADDRESS COVID-19 FINANCIAL IMPACTS TO CITY'S FY2020/21 GENERAL FUND BUDGET AND DURING ECONOMIC RECOVERY PERIOD
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
Approval of this item does not fall within a specific adopted policy priority within the approved FY2019-21 City Council Priority Workplan but is necessary to support the funding needed for projects and programs contained within the Workplan.
CEQA Compliance Statement
This is not a project as defined by CEQA as a budget or financing mechanism pursuant to 14 Cal. Code of Regulations section 15378(b).
BACKGROUND
Current budget projections indicate that General Fund revenues are expected to drop by approximately $10 million for FY2020/21 creating a significant General Fund shortfall. The overall recommendation for covering this budget deficit is a multi-pronged approach using reserves, CIP (capital improvement program) reductions, departmental services and supplies reductions as well as labor savings. The overall target for proposed labor cost savings for FY 2020/21 is about 10 percent of $26.7M or approx. $2.5 million.
While the City is working with its represented employee groups as well as unrepresented employees on strategies to achieve these labor savings, one potential mechanism for creating savings is by increasing the number of vacant positions within the City.
Employee voluntary separation programs are a typical option for public agencies who undertake a rapid downsizing effort and are intended to achieve the following objectives:
* Reduce salary and benefit costs in response to fiscal challenges.
* Focus the organization on core priorities, and strategic objectives, within a resource constrained environment.
* Minimize potential involuntary separations.
Th...
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