The Lodi City Council is in the middle of drafting a budget, and city staff gave reports on five of the departments' finances to the council on Tuesday.
The message? Employees need to agree to concessions, or else there will be widespread layoffs that affect services.
It could include reduced library hours, less park maintenance and the elimination of employees to tend the city's streets.
The council received overviews from the following departments: the Lodi Public Library; transit; streets; community development and parks, recreation and cultural services. The summaries were before any cuts or concessions are finalized.
Staff will go through all of the departments' budgets during meetings before the final document is voted on in early June. The city plans to have the detailed budget available for citizens to view next week.
Revenue for the next fiscal year will basically remain flat, with only a $66,410 projected increase, but the city will have to deal with a $6.6 million increase in employee costs.
Part of that amount is already taken care of with current concessions that employees have agreed to take, including furloughs, pay cuts or elimination of city contributions to an optional retirement plan separate from employees' pensions, city spokesman Jeff Hood said.
Also, the city will save money by offering 14 employees a two-year credit as an incentive to retire early.
City staff is asking employees to be make additional concessions to close the remaining $4.5 million gap. The deficit consists of the following increases: $1.2 million for pensions, $783,160 for medical insurance and $2.5 million for workers' compensation.
Below is a look at the four individual departments the city profiled at Tuesday's meeting. None of the numbers take into account any concessions that employees are negotiating:
Estimated expenditures: $1.43 million
Increase in employee costs: $144,012
Discussion: At the same time as expenses are increasing, the library will lose $57,000 in revenue because of state grants that are no longer being funded. If there are no concessions, the department's budget will be short $26,230, and staff says it will look at closing an additional 10 hours a week, reducing its part-time staff and eliminating the book budget.
The city's book budget was $175,000 three years ago, but now it has been reduced to around $70,000.
Estimated expenditures: $5.87 million
Increase in employee costs: $60,718
Discussion: The budget will be $88,720 in the black next year despite several big projects the department is working on.
The city will do a $1 million solar project that is funded through stimulus funds. The city is also replacing its 40-foot buses that were purchased in 2000 and are at the end of their lifespan. The city will spend $757,100 to buy 32-foot buses.
Estimated expenditures: $4.46 million
Increase in employee costs: $222,528
Discussion: The city is bringing the operating expenses in line with revenues, but without any concessions the fund will be down $464,960. If the city cannot strike a deal with bargaining groups, they will recommend laying off three positions bringing the total to 17 and additional restructuring.
"We run an extremely lean operation there, so we are seeing our deficit reduced," Deputy City Manager Jordan Ayers said.
The department is still working on a $1 million cape seal project, a $902,000 Hutchins Street reconstruction project, $120,000 for traffic signal and maintenance replacement, and $100,000 for sidewalk repairs and replacements.
Estimated expenditures: $1.30 million
Increase in employee costs: $149,306
Discussion: The department is reducing its cumulative deficit from $270,512 to $188,852. If the employees approve concessions, it will further reduce the deficit. The department has nine employees, plus City Manager Rad Bartlam, who is overseeing the department.
The goal is to have the department back to zero by the 2012 fiscal year. Building permits have recently started to increase. The city issues 184 permits at a cost of $98,232 in April compared to 130 at a cost of $59,170 in April 2010.
The city has also issued 1,666 permits in the first 10 months of this fiscal year totaling in $1.1 million compared to 1,380 or $510,998 in the last fiscal year.
Parks, recreation and cultural services
Estimated expenditures: $6.3 million
Increase in employee costs: $392,760
Discussion: The city combined the parks and recreation department and the community center into one earlier this year, which resulted in significant savings, Ayers said.
The department will have a deficit, and without employee concessions it will total $906,888.
The city already plans to eliminate an administrative clerk and reduce part-time hours. If the city cannot reach agreements with the employees in this department, it could result in up to five layoffs.
"The reductions we are proposing are pretty significant as a first cut. Over the next three years, much like streets and community development, we will have a program to reduce that deficit," Ayers said.