New tax to avoid more budget cuts in Menlo? New tax to avoid more budget cuts in Menlo? (June 30, 2004)

** Four straight years of belt-tightening are enough, says councilman.

By Rebecca Wallace
Almanac Staff Writer

What would it take to make you tax yourself?

Or perhaps the question is best put another way: what city services are you not willing to give up?

In the fourth straight year of budget cuts in Menlo Park, the City Council passed a $29 million general fund budget last week after worrying through proposed service reductions, layoffs and fee hikes. Employees have feared losing their jobs, and residents have protested proposed cuts in services.

In this process, some cuts come to pass and some don't, depending on what the council decides after hearings and discussion. But the ongoing uncertainty, Councilman Paul Collacchi says, can be killing.

"There's a lot of pain in the community. ... We can't keep subjecting this organization to regular cuts," Mr. Collacchi said before the council approved the budget on June 22.

Mindful of City Manager David Boesch's estimate that the city could face a $1.25 million deficit in 2005-06, Mr. Collacchi suggested throwing a big decision into the laps of city voters next year: swallow a big package of cuts totaling that amount, or approve a new tax.

Ideally, he said, city officials would lay out a list of services and positions that could be cut, and voters would choose, preferably in the November 2005 election: "If you vote to tax yourselves, we maintain the service levels. If not, we make the cuts."

A new tax in Menlo Park could take several forms, such as a sales, utility, or parcel tax. Mr. Collacchi said he'd like to have "a couple of tax packages on the table by early spring" for the council to choose from.

Council members have already expressed interest in a special tax or construction bond measure for the library.

By the time spring rolls around, Mr. Collacchi will no longer be on the council. His second term expires this year, and he has announced that he will not run again. But his council colleagues agreed to have city staff look into his cuts-or-tax idea. Nicholas Jellins called it "an intriguing proposition," and Chuck Kinney said, "I like the idea."

Mr. Boesch was more dubious, calling it "a risky roll of the dice" and saying that his budget plan approved by the council was "more balanced."

Mr. Collacchi responded that the budget was not structurally balanced; it includes using money from the city's $28 million general fund reserves, such as drawing out $958,000 for operating costs.

A temporary reprieve

The budget also includes dipping into the reserves to swell its road maintenance pot by $2 million. Previously, the city was spending around $300,000 annually, Mayor Lee Duboc has said.

The council also agreed to take $250,000 from the reserves to replace some aging city vehicles.

In addition, though, the budget continues the tradition of reductions, including reorganizing the community services department, demoting workers, and cutting the equivalent of 10.75 full-time positions.

The position cuts led Mr. Kinney to be the lone council member voting against the 2004-05 budget. He had spoken in favor of keeping Debbie Helming, the coordinator of the city's shuttle bus service who was slated to be laid off, and expressed concern over whether employees were being treated fairly.

"When you find someone with a good work ethic, you don't want to lose them," he said of Ms. Helming, drawing applause from the city employees present at the June 22 meeting, many of whom wore purple union T-shirts.

Several supporters of Ms. Helming had spoken on her behalf at past meetings, pleased with her work coordinating the buses that take seniors shopping and commuters to the office.

On June 22, she wound up with a temporary reprieve. At the suggestion of Mr. Jellins, the council agreed to let her stay on for another six months while her duties were being shifted to her co-workers.

Because Ms. Helming had not wanted to leave, the vote seemed a mixed blessing. Outside the meeting, another employee said wryly, "I don't know whether to congratulate you, Debbie."

Ms. Helming said later that she planned to continue working, but added, "This has been an extremely stressful time for me. ... I'm just really concerned about the future of the program."

Mr. Boesch has said that the shuttle program will not be cut back with Ms. Helming's departure.

Ms. Helming works a three-quarter-time schedule, earning around $60,000, with benefits bringing the total package near $80,000. Grant funding covers all but $20,000 of her salary annually, but Mr. Boesch has said that money could also be used for transportation projects such as traffic studies.

Other cut positions

As for the other city positions eliminated in the budget, two employees, the community relations manager and a social services coordinator in the senior citizens program, have agreed to take early retirement, personnel director Glen Kramer said.

The city is giving them credit for having worked two additional years at Menlo Park, which boosts their pensions, he said. Ms. Helming is also eligible for this arrangement.

Many residents had urged the council to keep Tyrone Williams, a three-quarter-time senior recreation leader at the Onetta Harris Community Center. Officials are working to try to find some part-time work for him, Mr. Kramer said.

In addition, two employees agreed to leave with enhanced severance pay and some other workers had their hours reduced, Mr. Kramer said. In the end, only one person was laid off outright, a 20-hour maintenance worker in the community services division, he said.

City officials hope to ultimately save $692,000 this year with the personnel cuts.

At the meeting, many employees and residents agreed with Mr. Collacchi that the cuts were taking their toll. Several cited a recent employee survey that showed morale in the workforce was notably low.

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