Riehl World: City Fiddles While Workers Burn

by Richard J. Riehl on June 16, 2011

Nero HallAt the June 7 city council meeting we learned the yearly rent for a plot in the community garden is slated for a 400 percent increase, from $60 to $250. After council member Farrah Douglas questioned the steep hike, Mayor Matt Hall observed it was only a monthly increase from $5 to $20. That reminded me of the life insurance ads on TV that boast of affordable premiums—“less than a dollar a day!”

Hall’s flippancy shows how far removed he is from those relying on social security alone for their monthly income. It also may explain his willingness to cut pay and benefits of city employees least able to afford them.

Carlsbad’s elected officials like to say the city has been able to dodge layoffs and deep cuts in services because of their careful planning and fiscal prudence. But a closer look reveals another side of the story.

The city’s proposed budget for 2011/2012 projects a $600,000 surplus, bringing the accumulated general fund balance up to $54 million, a whopping 47% of the $113 million budget. There’s even room enough for another $1.4 million bailout of the golf course. Previous yearly million dollar subsidies since its opening have been in the form of loans. But now that it’s clear the debt will never be repaid, and with hopes fading the course will ever pay for itself, it will now be a part of the regular operating budget, just like the city’s other recreational facilities.

Follow the jump for the rest of the story. . .The city boasts that no layoffs have been required during the recession. None are planned for next year. We can expect only a “minimal” reduction in city services, such as delays in street light replacements, road repairs and trimming trees on city property.

City officials claim “sharing the pain” have been the watchwords for budget cutting. But negotiations with the Carlsbad City Employees Association (CCEA) reveal the city’s lowest paid workers will bear the brunt of it. The group represents 340 employees with a pay scale ranging from $30,000 to $80,000. The city’s final one-year contract offer would result in a 7 percent cut in take-home pay, beginning July 1. That’s because the city wants to shift its share of pension fund contributions to employees, who will also be slapped with a one year freeze in pay.

Management employees, with a salary schedule ranging from $80,000 to $124,000, won’t feel the pain. City Manager Lisa Hildabrand told CCEA members the city will continue to pay management personnel’s 7 percent pension fund contribution and may give them a 2.5 percent pay increase, since they’ve gone without raises for three years. She told the group the city is also planning to consider outsourcing, furloughs, and moving employees around as additional cost-saving measures.

The CCEA met the city’s final offer with a counter offer, asking that the increase in pension contributions be phased in at 3.5 percent a year over two years, beginning December 1. The association agreed to a one-year pay freeze and a reduction in retirement benefits for new hires from the current 3% at age 60 based on highest salary to 2% at 60 based on a three-year average.

The city council will vote on the contract at its June 21 meeting. Council members need to explain why the city’s lowest paid workers are being asked to bear the greatest burden in these hard times.

Richard Riehl is a Carlsbad resident. Contact him at fogcutter1@yahoo.com
http://theriehlworld.blogspot.com/

{ 7 comments… read them below or add one }

Anonymous Citizen June 16, 2011 at 11:07 am

Just the first layers of the stinky Carlsbad onion – why does the city want to increase employees funding of their retirement when they already do not match the employees social security contributions (hey we’ll pay for your retirement if we can stop paying SS – ooops, nevermind….).
Has anyone investigated the elevated (much higher than the norm of city employees) suicides, illness, FMLA etc.. of Carlsbad city workers. A blaring sign of leadership ineptness in change management. Where is the “human factor” – oh yes…Lisa H. is a finance person. One “bean” here, one “bean” there…….What a perfect match for Matt H..

Constant Oberserver June 17, 2011 at 10:21 am

You all elected these guys…its the same old thing. We could have a really different outlook on this right now if we had Blackburn, Kulchin , Douglas, Wantz and another new face.

Its the same story every two years. Carlsbad continues to elect guys like Matt Hall because they know who he is and buy into his scare tactics.

I’m beginning to think there is no hope for change in this good ol’ boys town.

StraightShooter June 19, 2011 at 11:52 pm

I agree with you both. Lisa Hildabrand never should have been selected as City Manager – her skills lie in finance, not in dealing with actual human beings. As for Matt Hall – you are so right – same s**t, different name.

Poor Carlsbad didn’t realize what it was losing when Ray Patchett retired – a real leader who actually took into consideration the human factor, which is the exact opposite of the City’s current manager.

Family Guy June 20, 2011 at 12:07 pm

PENSION REFORM??? City of Carlsbad management does the least and gains the most, while the general workers who do the most have had to give up benefits,no pay increase for 2 years, fund their own pension and give in to the mayor and council’s iron fist. Where’s the pension reform? Will the city manager who makes over $200k per year , has her pension and other benefits paid in full fund her own pension? Will management have to fund their own pension contribution or will theirs stay funded and will they receive a possible 2.5% pay increase? On top of all that the city wants to consider outsourcing to companies who will provide lower quality work? Yet your general workers who make the least will be forced to fund their own pensions by taking a 7% pay cut. Matt Hall’s campaign was based on pension reform. Too bad he only meant the workers who are the lowest paid, Amazing, the council has no problem bailing out a losing golf course, building a new park, but they don’t want to support their employees who keep the city running. It’s not about saving money. It’s about the the mayor’s and council’s hidden plan. What do they have against city workers? Maybe the mayor, Mr. Packard and other council members, would like to spend a week doing the jobs of the general worker, get their hands dirty and see what it really takes to keep the basic city services going that are critical to maintaining Carlsbad. Maybe they should make their decisions based on what is best for the citizens of Carlsbad that elected them and not try to fulfill their personal vendettas or agendas.

used to be there June 20, 2011 at 5:01 pm

Family Guy – It’s really too bad that not enough people thought of that while Hall was running his fear campaign. Anyone who fell for the “pension reform” line should be ashamed of themselves. It was a very effective non-issue.

That’s politics for you!

Constant Oberserver June 22, 2011 at 10:03 am

You’re right, it was a non-issue. And that non-issue ended up shaping the entire election. If we continue to elect idiots like Packard and Hall, and force out the good young/new leaders that come up, we are headed for a world of pain.

Too bad everyone fell for the fear campaign…..or better yet, didnt pay attention or didnt vote at all.

littlebrother1948 April 18, 2012 at 11:18 am

Newsflash: the city will layoff at least 2 employees July 1. More to come? They’ll say no, but it will a lie just like all the other lies they tell everyday.

I’d love to see someone expose the incredibly top-heavy management to general employee ratio. In some areas of the city, you have multiple “managers” supervising a single regular employee. How’s that for efficiency!

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