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The San Ramon City Council is set Tuesday to review and discuss proposed cuts to the city’s budget for the upcoming fiscal year, with the goal of eliminating a $14.1 million deficit projected in the 2024-25 budget.
The issue was revealed following a midyear budget adjustment in February, during which the council approved $1.5 million in additional spending, with the deficit discovered by city staff weeks later consisting of that amount plus a $4.6 million shortfall in projected revenue compared with expenditures and a net loss of $8 million in general fund transfers.Â
“Approximately three weeks later, staff compiled the FY 2024/25 departmental budget requests and reviewed them with the City Manager, at which time it was discovered that stated departmental budget needs exceeded projected revenues by approximately $14.1 million,” administrative services director Kelly Sessions wrote in a staff report for the upcoming meeting.
Now city officials are faced with additional hurdles and difficult choices in the budgeting process for the next fiscal year, with budget cuts proposed across the city’s departments amounting to $8.6 million, plus an additional $2.6 million in reductions proposed for unfilled positions, $1.2 million in increased revenue, $1.5 million in funds generated by increased user fees and a transfer of $300,000 in general fund expenses for some current positions to a one-time funding source.
While operating with a deficit is nothing new, the scope of the shortfall currently facing the city is. Over the past four years, the structural deficit has ranged from $5.9 million to $7.9 million, dwarfed by the $14.1 million deficit projected in the 2024-25 fiscal year.
The biggest cuts under the proposed $8.6 million in reductions from city staff up for discussion at the workshop would come to the San Ramon Police Department and the city’s Public Services Division — $3,402,790 to SRPD and $3,436,984 to public services.
For SRPD, the proposed cuts include $1,401,852 in Tier 1 cuts to ongoing services that “may not be seen or felt in great significance” by the community but would still “significantly impact internal employee workload, retention, morale, leadership development, and departmental succession planning,” according to Sessions’ staff report.
The Tier 1 cuts would include eliminating funding for five currently vacant positions — $341,716 for an operations division lieutenant, $243,315 for a programs manager in the records and evidence division, $175,388 for an administrative office specialist, $165,756 for a police services technician in the patrol division, and $149,527 for an office technician in the records division.Â
Other proposed Tier 1 reductions include $151,000 in savings from deferring the replacement of two police technician vehicles, $50,000 in overtime reduction, and $21,000 in savings from eliminating the Polis Solutions program, and delaying the implementation of AI technology to analyze body-worn and dashboard camera footage.
While the Tier 1 cuts are anticipated to be felt most by SRPD employees behind the scenes, the $2 million in proposed Tier 2 cuts are likely to impact the broader public, according to Sessions’ staff report.Â
“Cuts made at the Tier 2 level will have significant impacts on departmental operations, including employee workload, retention, training, morale, leadership development, succession planning, and local agency partnerships,” Sessions wrote. “In addition, these cuts will affect criminal investigations, traffic safety, community engagement, external communications, and equipment readiness. The cuts will be felt and seen throughout multiple facets of the San Ramon Community.”
The proposed Tier 2 cuts — $2,000,938 total — would also eliminate a number of unfilled positions, consisting of $303,743 for a police sergeant position in the traffic division, and $272,119 each for five police officer positions. Deferred replacement of two patrol vehicles would also reduce expenses by $180,000, with $86,000 in savings proposed by eliminating the department’s canine program.
Like proposed cuts to the police department, the $1,361,357 in Tier 1 cuts for the Public Services Division also might be felt more behind the scenes than by the general public, according to Sessions. They include a 50% reduction in janitorial and carpet cleaning services for a savings of $280,626 and $69,032, respectively, as well as the elimination of employee appreciation and outreach for a savings of $11,700.
Other proposed cuts include a 50% reduction in landscape maintenance and weed-removal for a savings of $20,000 and a 50% reduction in pest control services for a savings of $9,222, which are anticipated to result in increased weed visibility and an increase in bug and rodent issues according to Sessions.
Proposed Tier 2 cuts of $2,075,627 would also more greatly impact the public, according to Sessions, who said they “will be felt and seen throughout multiple facets of the San Ramon Community.”
“These cuts include streetscape and park landscape maintenance reductions, tree maintenance reductions, concrete repair reductions, fountain schedule adjustment, and staff personnel reallocations,” Sessions wrote.
The Tier 2 cuts would include a 25% reduction in landscaping services for non-school parks for a savings of $143,781 as well as for schools for a savings of $181,455 and the Dougherty Valley landscape for a savings of $442,125.
Other major cuts in Tier 2 include a 50% reduction in tree maintenance for the Dougherty Valley landscape for a savings of $253,898 and a 10% reduction in water use for parks and landscapes for a savings of $317,773.
The proposed $3,436,984 in cuts to public services would make up a majority of the total $4,239,684 proposed across the city’s Public Works Department, with $171,506 in cuts proposed for the Transportation Division and $631,194 proposed for the Engineering Division.
The city’s Parks and Community Services Department would also be hit hard by the proposed cuts, which amount to $750,077 across both tiers. The San Ramon Main Library’s hours would be reduced by four each week for a savings of $51,000 under Tier 1 reductions as part of the $206,429 in cuts proposed for that category, along with other reductions in maintenance, supplies, and services.
“The Tier 1 Cuts described below will have a big impact on the department staff as many of the cuts will require full-time staff to pick up more work that has been handled by part-time staff and or contractors,” Sessions wrote. “It will limit and reduce access to facilities by the community and result in a lower level of overall customer service as we will be decreasing available staff hours to assist the public.”
Again, Tier 2 cuts would be even more visible to the general public, resulting in the elimination or reduction of numerous popular programs and activities. These include eliminating the city’s annual tree-lighting and Holiday on the Farm events for savings of $4,478 and $5,010, as well as the Gale Ranch and Windermere teen centers for a savings of $10,015 and the dive-in movie program for a savings of $2,990. Reductions to services and hours at the Dougherty Valley Aquatic Center are also proposed for a savings of $13,474.
“The Tier 2 cuts will have a significant impact on the community in addition to staff as they will see elimination of several community events, reduction in hours and services at multiple facilities, increased wait times for service and increased workload on existing staff which will result in lower overall quality and customer service,” Sessions wrote.
While the proposed cuts would extensively impact the Parks and Community Services Department, city staff are also looking to that department to increase city revenue in the proposed budget-balancing measures set for discussion, primarily by increasing fees for the department’s services.
The $249,923 in additional revenue proposed for the department would include 3% fee increases for indoor facility rentals and group and aquatic picnics for an additional $2,970 and $27,000, respectively, a new room setup fee for an additional $32,500 in revenue, an additional $1 per hour fee increase for sports fields for $26,000 in revenue, and a tennis instructor contract adjustment that would increase funds by $123,000.
With the proposed cuts across all departments amounting to $8.6 million, they would surpass the $8.1 million target city staff were seeking to achieve in their proposal with an additional $500,000 to spare. If approved, the City Council would be able to use the $500,000 to restore one or more services on the chopping block at their discretion.
City staff are asking the council for feedback on the proposed cuts and direction on next fiscal year’s budget at the upcoming workshop, which is set to be informational only. Staff aim to prepare a preliminary budget for review by May 17, with a study session on proposed operating and capital improvement budgets scheduled for May 28, and the final budget set to be presented to the council for consideration on June 11.
While the budget process will be ongoing until then, staff are asking for more immediate feedback on the proposed cancellation of several summer programs and events that are rapidly approaching, including one installment of the Summer Concert Series on July 1, the dive-in movie program, a reduction in Camp Central extended care hours, and the reduction to hours at the Dougherty Valley Aquatic Center.
The San Ramon City Council is set to meet at 3:30 p.m. on Tuesday (April 23) ahead of their regular meeting that evening. The agenda is available here.
A $14.1 million dollar deficit doesn’t just pop up out of nowhere. Sounds like somebody has been kicking the can down the road and should be held accountable. I would love to know our recently retired former city manager’s knowledge regarding this.