LAKEPORT ? The Lakeport City Council approved a hiring freeze unanimously Tuesday.
Councilman Ron Bertsch proposed the freeze, saying the city currently pays $800,000 annually in salaries and $400,000 annually in benefits.
“Isn”t it unusual for a city to pay half of the salaries in benefits?” Bertsch asked the council.
Interim City Manager Kevin Burke said it was, but said the city”s two employee unions should have a say before the council took action.
“You can”t unilaterally implement it. Even though it”s a future class of employees, exclusive bargaining units still have the right to negotiate,” Burke said.
The next scheduled meeting with the unions was scheduled no sooner than 2009. City Attorney Steve Brooks said the unions could be called to discuss the issue sooner than that. Burke said the council could give staff direction to search for a benefit less expensive benefit package in a closed session. Bertsch said the city needed to act now, saying the city”s budget conditions were not ideal for hiring with the current benefit package.
“We”re paying a quarter million per year for medical for people who no longer work here, and they earned it while they were here. But if we don”t stop now, it”s going to get worse,” Bertsch said.
Burke said the city had no plans to hire new employees, with the possible exception of a school resource officer for the Lakeport Police Department.
In other business, the council tabled a discussion about whether or not to set aside $50,000 in its newly adopted budget to reimburse the Lakeport Regional Chamber of Commerce for annual events the organization puts on, including the Dickins Festival, the Fourth of July fireworks display and bass tournaments.
Lakeport Regional Chamber of Commerce Executive Director Melissa Fulton told the council that from approximately 1988 to 2002, the city had paid the chamber by resolution for marketing the city.
“Former city manager Randy Johnson requested the council rescind that resolution, and the TOT (transient occupancy tax) funds were then put directly into the general fund, thereby losing their identity as marketing funds,” Fulton said.
Burke told the council that the $50,000 was included in the final budget the city adopted in July, but was amended to include the amount after City Manager Jerry Gillham”s presentation before he deployed to Iraq. Because of the discrepancy, Burke said the council had discretion to decide whether or not to set aside the money to reimburse the chamber on a case-by-case basis, with a maximum amount of $5,000 per event.
After discussing the possibility of using the city”s $400,000 line of credit to fund the contribution, using Measure I funds or cutting from a city department, the council could not reach consensus.
Contact Tiffany Revelle at trevelle@record-bee.com.
