MURRIETA: City to use extra revenues to hire department head
$1 million to be used to update payroll software
By NELSY RODRIGUEZ - Staff Writer | ∞
MURRIETA ---- Estimations of how much money Murrieta would pull in during the last fiscal year were left in the dust as the city finance director announced Murrieta received about $2 million more than it had expected.
All but $400,000 already has been earmarked to be spent in the upcoming months.
Finance Director Suzanne Wellcome told the City Council earlier this month that the city's revenues for the fiscal year that ended June 30 exceeded expectations.
In June, the council approved a roughly $40 million spending plan for the city for this fiscal year. The surprise influx of $2 million is the equivalent of a 5 percent increase in revenue.
Some of the unforeseen revenue came from a growing number of residents buying their Internet, cable and telephone plans as a fiber-optic bundle from Verizon, leading the telecommunications company to pay the city higher franchise fees to the tune of $665,000, according to city reports.
Other sources of the money were smaller but added up, said Teri Cordoza, a city budget analyst.
Although the surge in revenues is good news for the city, one councilman said he believes the money should be tucked away for a rainy day.
Despite that sentiment, the council agreed earlier this month to spend all but $400,000 of the unanticipated revenue.
Much of the $2 million will be used to update an archaic city accounting system and to hire a director of human resources.
Currently the city employs a manager of human resources, who works closely with City Manager Rick Dudley. City officials say a director is necessary for bargaining negotiations, risk management and insurance issues. The city set aside $125,000 to hire for that spot.
"I think the HR director position is absolutely crucial," Mayor Rick Gibbs said Tuesday. "So much of what you do in city government is based upon HR direction."
The city also will open a position for an economic development manager, who would work under Bruce Coleman, the director of that department,and whose salary will be funded by that department having shaved expenses by $415,000 this fiscal year, city staff reports state.
The manager will help Coleman attract businesses to Murrieta, retain the businesses that are already here and help redraft the overall map of land use in the city, said Councilman Gary Thomasian.
"Bruce is kind of spread pretty thin right now," Thomasian said. "He's one person and it's hard for him to be two or three places at once."
The city also will use up to $1 million to buy new accounting software to replace the city's outdated Disc Operating System, a program that saw its heyday in the 1980s and mid-1990s. The software is "maybe as old as the city is," Wellcome said.
Another $500,000 of the unanticipated money will be earmarked for a potential increase in rates the city pays to the California Public Employees Retirement System. That agency pays retirement benefits to former city employees, and city officials are expecting that a rate hike could kick in during the 2011-12 fiscal year, city reports state.
The city also plans to set aside $60,000 toward the establishment of an AM radio station for the Murrieta Fire Department to transmit emergency information.
Though the city will fill several holes in its operations and still retain about $400,000 in reserve, Gibbs expressed concern about approving expenses that had not previously been written into the budget, particularly because of the downturn in the national economy.
"Each department needs to do such a competent job on their budget that they are comfortable that when they turn it in, it's good for at least six months," Gibbs said.
Contact staff writer Nelsy Rodriguez at (951) 676-4315, Ext. 2626, or nrodriguez@californian.com.
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NOT AGAIN wrote on Nov 25, 2008 9:25 PM:Murrieta now has a slight budget surplus and our city council wants to spend it already. I see this ending up the same way it did several years ago. After we hire new dept. heads, they'll realize the budget doesn't add up and threaten to close parks and lay off police and fire personnel if they aren't able to raise my taxes. PLEASE, save the money. We're doing fine without a HR dept. head.
OMG wrote on Nov 25, 2008 11:56 PM:Well, who cares if we're facing the most uncertain economic climate in any of our lifetimes. If we've got a few extra bucks let's SPEND, SPEND, SPEND. Is our city government insane?
Cautiously Optimistic wrote on Nov 26, 2008 7:54 AM:This is pretty big news, isn't it? Didn't a couple of cities just lay off employees? I can't believe in these economic times Murrieta has extra money.
Bang for the Buck wrote on Nov 26, 2008 8:01 AM:If Murrieta does not use all available resources right now to hire the best of the best in top flite economic development pros, it is missing its last and best chance to maximize the amazing potential of the vicinity in and around the Golden Triangle. Hiring a minor league staffer is not the solution. Retaining a first class pro or team with a stellar track record from the world of high-end retail recruiting is only the beginning of the solution, but it is an extremely important beginning.
More Government wrote on Nov 26, 2008 8:10 AM:I think we do need more government officials. It is alwyas good to hire more people, no harm in employment. If we have some extra revenue we should invest it in jobs and government jobs are the best. I support the decision to invest this money in our city.
to More Government wrote on Nov 26, 2008 8:42 AM:Wow. Put someone like you, 8:10, in charge of our budget, and we can get rid of all that filthy "extra" cash in a flash. Maybe we can get real lucky and find a couple unemployed bureaucrats to crank out more rules and regulations and fees and fines for our citizens. That brings in even more money and we can hire even more bureaucrats, who can then figure out more ways to squeeze fees and fines out of citizens and business applicants and so on. What an enlightened economic plan. Yeah. Right. "It is always good to hire more people". Excuse me, but what bus did sanity leave on?
Murrieta Mom wrote on Nov 26, 2008 9:06 AM:Who is ru(i)nning this city anyway? Doug and Randon or Verizon? This is corporate finance at the Murrieta citizens expense. It started with King cable and ends with Verizon. The CCR's have benefited and allowed this unfair tax for the good of the Telecommunications Executives. Do you think the puzzle is coming together now?
To Murrieta Mom wrote on Nov 26, 2008 9:59 AM:Lady, you make no sense what-so-ever. What the heck does the cities favorable financial position have to do with Verizon, Randon, Doug or King cable? Get over your hate and be happy that the city isn't nearly as bad off as some wanted everyone to believe.
Community wrote on Nov 26, 2008 10:03 AM:You should all be ashamed and concentrate on being a community instead of greedy individuals.
The city has our best interests at heart and does a fantastic job. We should use these extra revenues to build personnel infrastructure and hire people.
Stop thinking only of yourselves and your pocket book, we should all spread the wealth, work together, and do more sharing and less selfishness.
to Community wrote on Nov 26, 2008 10:21 AM:Yes, and you, "wealth spreader", run right down and withdraw everything from your bank account (if anything is in it), and start spending it. Share! Share! Share! Don't be selfish. Then you can go broke along with the spend, spend, spenders at Murrieta City Hall. Hey, why not then put up bunk beds for the homeless in the council chambers, and have the City Manager manning the big serving spoon on the soup line. Do it! Don't be greedy!
Council meeting wrote on Nov 26, 2008 12:01 PM:Did anyone watch the city council meeting on that evil verizon cable channel? The council actually had a pretty long discussion about the extra money. I think if you look at what was said, each said to put it away for these things that may come down the road. The only things that sounded like was essential right now was an hr director and a computer system for finance. I've worked with an old computer system for a finance department before, and it's not pretty. And the city is actually using a DOS based software. I haven't seen one of those in 15 years. But the figure given for the software was a maximum, and the lady that spoke to the council said it should come in less. I'm as skeptical as the next, but I'm giving them the benefit of the doubt on this one. By the way, I'm becoming a fan of the mayor...does he carry any baggage like warnie did? I don't remember ever hearing him caught up in a scandal or being in the pocket of developers. He's very articulate.
TO EIGHTFORTYTWO wrote on Nov 26, 2008 12:13 PM:Your frustration is noted. And it is shared by the majority of the voters in Murrieta. EightOOne (Bang for the Buck) above has it ritht also. Most of the voters in Murrieta who have lived in genuinely prosperous communities know that the road to prospertiy is paved with spending restraint, except when it comes to the kind of hirings that will produce major results. The very best of those kind of hirings are very high cost, but USUALLY TEMPORARY, "head hunters" that go after and obtain major commercial tax producers, and advise the city management along the way.
Cut low level costs and hire top level champions. City Mgmt: Don't gamble our future on your intuition. Cut the deadwood, and go for proven first rate winners. That's how success is achieved.
When I was a Child wrote on Nov 26, 2008 1:12 PM:...around eight to ten years old, if I found some 'extra' money (in secret places where money grows on its own, as I discovered it did in couch cushions), I would then find the quickest way to spend it. The urge was almost irresistable. But then, I started growing up. I learned the value of saving for both rainy days, and those rarest of days when earthshaking deals come along. Murriets is now, as a city, about seventeen year old. Old enough, I think,to start being responsible about saving.
okay okay wrote on Nov 26, 2008 1:42 PM:I feel compelled to comment on this one... It is true that surrounding cities have had massive layoffs. We should be happy to be in this "boat" together. Murrieta is not a one horse town anymore. There are good businesses, great schools and lovely homes. If our city employees had found a shortfall you would have all been screaming about the bureaucratic idiots. Let them do their jobs so you can get your bitter, angry asses to your own jobs. Jobs you too should be happy to have, with nearby resaurants for lunch and no worry about whether your child is safe at school. Ingrates!
to Council meeting wrote on Nov 26, 2008 2:00 PM:OK, first of all, why is Verizon "evil" in your mind? Just curious. And next, yes DOS is an oldie. But for certain uses, it is a goodie. It relys more on the human knowledge element than the magical machinations of a number crunching machine. And please, you can't tell me the city of Murrieta has the accounting problems of a megagiant city. If it's problems do go beyond the abilities of the accountant, it says more about the accountant than the computer. What our city truly needs most is a simplification of the incredible system of charges and fees involved as a necessity only to maintain a fee-eating bureaucracy. If you stick it to the citizen or even the builder, you stick it to the city in the end. No pun. Even in a small town, those kind of bureaucratic beasts can get out of hand.
to Murrieta Mom wrote on Nov 26, 2008 2:26 PM:You are correct! Verizon, Doug, and Randon are resposible for global warming as well. Why do you seem to think the sky is always falling and it's these individuls fault?
Murrieta Mom wrote on Nov 26, 2008 3:49 PM:Conflict of interest,not to mention neither had impressed me as Planning Commissioner. An inquiry with a ethics board would be prudent to insure that their employer is not being overly compensated on account of their public positions.
Aw gee whiz Mom wrote on Nov 26, 2008 4:32 PM:...Let's face it. Murrieta has a lot more to worry about than the fact that we have two guys who work for the phone company. I agree, if they got their jobs because they helped Verizon in Murrieta (and I don't know that they did), then they should be forced to spend the holidays waiting at home for a Verizon repair guy to show up. But, that's not going to help Murrieta get its economic engine going. That's our real problem.
To 2PM wrote on Nov 26, 2008 5:35 PM:My comment about "evil verizon" was an attempt (albeit poor) of irony. It's funny how some will blast verizon in this town, yet the franchise fee provided to the city covers a lot of ground, and apparently $600k worth of ground.
old town wrote on Nov 27, 2008 8:14 AM:An economic development manager may be a good idea as long as they give some attention to the old town business area. Nothing historic or attractive down there that would influence someone to park and shop. Rebuild the entire area to a higher standard and they will come. If ignored, it will continue to be a joke.
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