LAKEPORT — According to a press release sent by Acting City Manager, Kevin Burke, The City of Lakeport”s adopted budget for the current fiscal year, 2008-2009, contains a gap of approximately $400,000 between expected revenue and authorized expenses.
When the budget was approved, a $400,000 line of credit was identified as the means to cover this expected shortfall in case of a cash flow problem. Since the adoption of the budget, current economic conditions have caused actual revenue to be significantly less than last year.
For example, the current year-to-date sales tax revenue is approximately 10 percent less than the prior fiscal year. Although the exact extent of the additional shortfall for the rest of the fiscal year is unknown, the City is committed to being proactive to reduce expenses in all areas so that the proposed budget for next year will be structurally balanced without the use of a credit line, and so that the city will not have to reduce one of its most precious assets: its workforce.
In keeping with these goals, the City of Lakeport has reached an agreement with its management employees, the Lakeport Employees Association and the Lakeport Police Officer”s Association for a work furlough plan in order to reduce expenses during the current fiscal year.
This is essential in order to put the City of Lakeport in a stronger cash position for the upcoming fiscal year.
The plan will require each full-time employee to be furloughed for six unpaid eight hour periods during the rest of the current fiscal year, for a total of 48 work hours. For police officers on ten hour shifts this would equate to four full ten-hour work shifts, plus an additional eight-hour period. All other staff would be furloughed for six full eight-hour work days. In order to maximize savings, most staff will take their furlough days on the same day, so that City Hall and the Police Department business offices would be closed. This will result in additional energy and fuel savings.
In order to take advantage of historic low levels of activity, and take advantage of the fact that city hall is already going to be closed for four days out of the next two weeks due to Christmas and New Years holidays, the City has agreed with its employees that the furlough days will be taken in connection with these holidays.
This will result in city hall being closed for two weeks in connection with the holidays. It is hoped that this will minimize public inconvenience as there is traditionally very little business activity at city hall during this two week period. The two weeks are Dec. 22-26, and Dec. 29 through Jan. 2.
In order to minimize the financial impact on staff, the hours will be deducted in four hour increments each pay period during the second half of the fiscal year, beginning Jan. 2009, and not all at once from their paychecks.
The proposal is expected to save the city general fund $40,162 this fiscal year; in addition, water and sewer enterprise funds will save $26,378, for a total savings of $66,540.
This program will not affect employee salary rates; those will remain the same.
However, the City realizes that the result of this program is a decrease in actual employee income, and represents a significant sacrifice on the part of every participating city employee, including department heads.
The public should be made aware that certain crucial city services will be maintained during this two week period. For example:
?Police patrols will still be active and police officers will continue to be on duty to respond to calls for service.
?Fire department services will not be effected since no Lakeport Fire District employees are employed by the City of Lakeport.
?All other city staff will also be available for emergencies the same as they are on any weekend or holiday when city hall is closed.
Additional information to be aware of:
?Water and sewer due dates for accounts in good standing have been moved to Jan. 9 due to the furlough.
?Utility bills cannot be paid in person at city hall during these two weeks; however, customers can leave their payments in the drop box at city hall, or wait until Jan. 5.
?No already delinquent customers will have their water services shutoff during this period, but any existing delinquent amounts will need to be paid by January 5th, 2009 in order to avoid services being shutoff.
?In order to start water service during the two week period, call 263-3578 (recorded message), and leave the address where water service is to be turned on; city personnel will respond and after collecting a required deposit of $135, service will be turned on.
?In order to stop service, call 263-3578 (recorded message) and provide the address where service is to be terminated; also provide a contact telephone number for city personnel follow up and/or return of initial deposit.
?If a building inspection is required during this two week period, please contact the planning department prior to the two week period, or on Jan. 5, when city hall will resume normal operations.
