The City of Avalon won’t be hiring anyone for at least two weeks.
At that time, the council will receive updated figures on the city’s budget.
That was the direction of Mayor Bob Kennedy to staff, informally supported by two other council members, following a discussion of cost saving measures for this year and next year at the Tuesday, Feb. 4, City Council meeting.
City Manager Ben Harvey suggested that the city consider a year-long hiring freeze.
The City of Avalon won’t be hiring anyone for at least two weeks.
At that time, the council will receive updated figures on the city’s budget.
That was the direction of Mayor Bob Kennedy to staff, informally supported by two other council members, following a discussion of cost saving measures for this year and next year at the Tuesday, Feb. 4, City Council meeting.
City Manager Ben Harvey suggested that the city consider a year-long hiring freeze.
However, Avalon Fire Chief Steve Hoefs questioned the accuracy of the projected $1.6 million deficit figure. He also expressed concern that leaving a firefighter position unfilled could harm the Fire Department’s ability to provide emergency service.
According to the staff report by Harvey, the budget has a $1.6 million deficit.
Harvey’s report summarized measures taken to reduce costs, increase revenue and off-set expenses. These measures included: adding reimbursements for construction materials and debris (which were not included in the budget), and the decision of four city employees to retire or leave their jobs.
“It is anticipated that two of these four full-time positions will not be filled,” the report said. The estimated cost savings: $75,000.
One cost offset was a contribution to cover the cost of the Joe Machado Field concession stand.
According to Harvey’s report, Avalon budgeted $50,000 for the project. The awarded bid came to $185,000.
The report said that Packy Offield had secured pledge from the Offield Foundation to cover the difference.
The report also said the Successor Agency to the Avalon Community Improvement Agency (redevelopment agency) would receive up to $200,000 in reimbursement from the state.
Hoefs said some of the changes mentioned in the report were not preliminary.
“It’s a setback for the Fire Department and it’s based on a $1.6 million deficit,” Hoefs said.
He questioned the accuracy of the figure.
Based on revenue figures available for the first four months of the year, Hoefs believed Avalon would receive at least $23 million in revenue rather than $22 million.
He said the Fire Department was being asked to decrease services based on numbers that he believes are not accurate.
He also said that no one has talked about the $10 million Avalon has in reserve.
Later, Harvey said that Chief Hoefs was exercising his First Amendment rights.
He also said he did not agree with everything that Hoefs had said. Harvey did not specify his areas of disagreement.
Council Member Oley Olsen said that while waiting for the completion of the audit, the city should have a hiring freeze.
“Going forward, we have to figure out where we’re going and where we’re starting from,” Olsen said.
Hoefs said the audit wouldn’t change the numbers.
According to Olsen, using the surplus to offset the deficit at $1.6 million a year would wipe out the surplus in about six years.
Council Member Ralph Morrow said he agreed with a hiring freeze.
“Our budget for salaries is about $5 million a year, roughly,” Morrow said.
Morrow said the loss of the redevelopment agency “killed us” and had pushed many California cities into bankruptcy.
Mayor Bob Kennedy also supported the hiring freeze. He said the city would not hurt anyone if there were a hiring freeze and the city reassessed the budget in two weeks.
Harvey suggested the city consider a hiring freeze for the rest of the year.
