City Hall Continues Budget Battle vs. Fresno Police

By Justin Willis, KSEE24 News

July 2, 2012 Updated Jul 2, 2012 at 6:26 PM PDT

Round 1 was Thursday, with council members adopting a budget, and FPOA voting for a conditional concession.

Round 2 was Friday, when City Hall rejected that condition, which was a contract extension.

Today was round 3...

Jacky Parks, FPOA Pres.: "Nobody wins these rounds, especially the community."

City officials responded to FPOA's offer of a $5.7 million concession plus a contract extension by laying out the dire need for unconditional concessions from police...

City manager Mark Scott says it's right for the public and employees.

It would've helped eliminate cuts to staff.

Other unions would've been more likely to follow suit...

It would've prevented a downgrade in the city's credit rating, and FPOA can afford it.

Mark Scott, Fresno City Manager: "It's their right to say no to us. We respect that."

But Scott and Mayor Swearengin went on to explain the need...

Mayor Swearengin: "We have to have a stable City Hall and be able to provide the type of stable municipal services that supports economic growth and that's what we're trying to do here."

So why else?

Over the past few years, City Hall has seen a decrease in it's general fund of about $21 million a year.

Scott says, meanwhile, FPOA is seeing increases.

Since it's current contract was signed in 2007, FPOA has seen increases of $38.6 million to date.

Concessions in that amount of time are $8.6 million.

City Hall estimates to 2015, that increases will be at $67.2 million, with concessions at $14 million.

Larry Westerlund, City Council Member: "We cannot afford to pay the contracts that we negotiated back when we were coming back mid-year with $6 million extra to the city council."

City hall says accepting FPOA's offer would've been a short term solution with a long term expense... $10-million dollars for that contract extension.

Now, as a result of the stalemate with FPOA, the city says its credit rating is being downgraded from an A-, to a BBB negative classification.

That was based on a lack of reserves, and the city being unable to obtain employee concessions.

Mark Scott: "It's a problem and it's costs us money. It also keeps us from being able to acquire equipment. It causes us to put off fixing things that need to be fixed that are going to cost us more in the future."

But FPOA leaders say the city just needs to adjust its spending habits, and that officials haven't been entirely forthcoming about monies coming in.

Jacky Parks: "We're looking out for our community and we're doing the same thing as the other lenders are doing. We're saying we're going to give you this money, but we have to teach you a lesson too and that lesson is the extension and they know that."

Without the concessions from FPOA, the city has a $4 million budget gap to address.

The mayor and city manager say they'll have revised budget proposals over the next month.

Despite the ongoing budget challenges, city manager Mark Scott maintains Fresno is not in a fiscal emergency.

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