Layoffs, Service Cuts Loom As Concord Faces City Budget Shortfall

By Sam Richards, Bay City News Foundation

CONCORD, CA — Layoffs, service cuts and other reductions are all on the table as Concord city leaders work to close a $14.6-million general fund deficit for the 2020-2021 fiscal year, as well as a $6.2 million revenue gap to end the current fiscal year.

While the city is looking at cutting 23 full-time-equivalent positions, only nine people would be laid off, as 16 other positions are already vacant, City Manager Valerie Barone told the City Council Tuesday.

Among those proposed cuts is the assistant city manager. Also, Barone said, five employees have agreed to take "voluntary separations."

Among other proposed cost-cutting measures are eliminating the city's Domestic Violence Victim Advocate position, a contract position that's already vacant; cutting some operations at the city's Camp Concord near South Lake Tahoe; reducing code enforcement staff, and closing the Concord Community Pool over the winter.

Several members of the public told council members not to cut Camp Concord's summer family camp.

Others, citing the national unrest connected to the May 25 killing of George Floyd by a Minneapolis police officer, suggested funding could be transferred from the Police Department to other social services.

Barone said the city's plan is to adjust Camp Concord operations to serve a higher percentage of Concord families. Mayor Tim McGallian and Councilwoman Carlyn Obringer said they want to have discussions "as soon as possible" with the Mount Diablo Unified School District and with Contra Costa County to best address "common" issues like how to best deliver mental health services and other benefits.

Obringer also said she opposes laying off the city's painter, Ed Moore, as suggested by city financial staff. Moore, a 16-year city employee, called in to Tuesday's council meeting to defend his job; Obringer said Moore's work was vital, and that he made an "eloquent" case for his job.

But Councilwoman Laura Hoffmeister reminded her colleagues that restoring Moore's job, or other services targeted by cuts, would require a cut somewhere else to keep the budget balanced.

Concord had been facing financial challenges even before the COVID-19-related shelter-in-place orders had, in particular on local businesses and the sales tax they generate. The expected Concord general fund shortfall is $6.2 million for this fiscal year, which ends June 30.

The city plans to dip into its reserve fund for $11.2 million to boost the 2019-20 budget, and for $4.6 million to help fill the 2020-2021 budget hole.

Projections of sales tax losses due to the pandemic range from 10 to 15 percent for 2019-20, and from 22 to 32 percent for 2020-21. Barone and other city budget officials said predicting the exact impacts of COVID-19 over the next year is a very inexact exercise, making it hard to plan with any degree of precision.

Concord has plenty of company in dealing with COVID-19-driven budget crises. The League of California Cities said that every single city in the state, regardless of size and population, faces significant projected revenue loss for their 2019-20 and 2020-21 budgets — a total shortfall of more than $7 billion.

More than 90 percent of California cities are considering employee layoffs or furloughs, or cutting public services, the League said; 72 percent are considering doing both.

In April, in response to the city's budget shortfalls, City Council members voted to slash their own pay by 10 percent, from $1,352 per month to $1,216.80.

The council also voted to cut by 5 percent the salaries of top city executives, including Barone, City Attorney Susanne Brown and Police Chief Mark Bustillos, as well as other executive management employees, non-sworn managers and confidential employees. The salary cuts, combined with scheduled furloughs and 401(k) contribution cuts together, would amount to an approximate 9 percent cut in overall compensation through June 2021.

The prospect of budget help from state or federal sources is a long shot, said Karan Reid, Concord's finance director. But she hopes the federal "Heroes Act" coronavirus stimulus bill might provide some measure of help. It has been approved by the Democrat-controlled House, but a Senate vote isn't expected until July.

The City Council is expected to vote on a 2020-2021 budget at its June 23 meeting. Barone also said it is likely the approved budget will have to be revisited in the fall, as COVID-19-related changes occur.

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