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ESCONDIDO: City Council postpones layoffs, emergency budget cuts by one week

Diaz requests delay to find other ways to reduce $6M deficit

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ESCONDIDO -- After more than two hours of spirited debate Wednesday night, the City Council agreed to wait one week before approving emergency budget reductions that would include laying off 31 full-time employees and making substantial cuts to libraries, recreation, police and firefighting.

Councilwoman Olga Diaz requested the delay, saying she needed time to find other ways to close the city's $6 million budget deficit. But the rest of the council members said there was little chance they would make significant changes to the emergency cuts during the seven-day reprieve.

The council was urged to adjust some of the cuts by avid library supporters, employees slated to be laid off, and residents advocating that the city cover part of the deficit with a $19 million subsidy earmarked for a downtown hotel that may never be built.

The council voted Wednesday night in closed session to end its contractual agreement with the developer of the proposed hotel.

But the council majority reiterated its commitment to use the hotel money for some other economic development project in the future, not to reduce the city's deficit.

However, Diaz said she plans to urge her colleagues to change their minds during the next week.

"I have no problem spending $215,000 of that hotel money to cover the library cuts we're planning," said Diaz. "We owe it to everybody to take another week and talk about this."

City Manager Clay Phillips said every month that the city delays the emergency cuts would deepen the deficit by another $500,000, meaning that every one-week delay costs the city roughly $125,000.

"It is what it is," said Phillips, explaining that he plans to make all the cuts by Feb. 1. "You need to move on with it."

The rest of the council agreed with Phillips, but agreed to wait one week anyway.

The city has seen a severe revenue drop during the economic downturn because its 20 auto dealers and the Westfield North County mall make Escondido more reliant on sales tax than other cities.

Before the council debate Wednesday, several city department heads outlined the expected effects of the proposed cuts, which would total $3.2 million and reduce the projected deficit for this fiscal year to $2.8 million.

City Librarian Laura Mitchell said the $215,000 in library cuts would include slashing hours at the main branch from 57 per week to 32 per week and that hours of operation at the East Valley branch would drop from 36 per week to 15 per week. Many part-time employees would also be laid off, she said.

Fire Chief Mike Lowry said the $521,000 in fire cuts would be achieved by not hiring employees for a new station that opened recently on Del Dios Road.

Police Chief Jim Maher said the bulk of his $405,000 in savings would come from reduced bicycle patrols and freezing six open officer positions. Maher said he was confident emergency response times wouldn't suffer.

Robin Bettin, assistant director of community services, said the recreation cuts would include eliminating all city-sponsored sports except youth soccer, closing the East Valley Community Center on Sundays, reducing hours at the Escondido Sports Center and decreasing supervision at the city's skate park.

Other savings would include $584,000 from the 31 full-time layoffs; $387,000 from eliminating longevity increases and retirement contributions for most city employees; and $475,000 from some recent city employee retirements and transferring some employees into grant-funded positions.

City officials said they tried to avoid the layoffs by asking the 224 employees working in City Hall to take 5 percent pay cuts in exchange for working two less days per month. But that was disputed Wednesday night by officials from the labor union that represents many of those workers, the Escondido City Employees Association.

Union President Russ Lane said the city refused to negotiate unless the union agreed to some unacceptable demands. Lane also accused the city of retaliating against the union by choosing to have 28 of the union's members among the 31 layoffs, including Lane himself.

But Carol Rea, a city employee represented by the union, said union leaders were not being "forthright" with members. Rea also said she appreciated the city's unsuccessful attempt to avoid layoffs with the proposal for voluntary pay cuts.

No representatives from either the police officers union or firefighters union spoke at the meeting about the cuts to their departments.

Councilman Sam Abed and Councilwoman Marie Waldron said they were concerned about the public safety cuts, but said they could still support the overall package of emergency cuts.

The cuts were suggested this winter by the council's budget subcommittee, which includes Mayor Lori Holt Pfeiler and Councilman Dick Daniels.

The proposed $3.2 million in cuts would reduce city expenditures for fiscal 2008-09 from $82 million to just under $79 million. City revenue for the year is expected to be less than $77 million. The city's final expenditures for fiscal 2007-08 were slightly more than $86 million.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

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