Pinole Council Adopts Two Budgets, Contingent on Voters' Appetite for Utility Tax

The Pinole City Council on Tuesday adopted two versions of the 2012-13 city spending plan based on assumptions that voters will either approve or reject the renewal of a utility tax in November.

The council unanimously voted for both a $10.9 million plan with the tax revenue and for $9.8 million alternative that would include the loss of about 14 jobs and reduced subsidies to the Pinole Swim Center and to the Pinole TV station operations. The proposed job cuts would affect five sworn police positions, two firefighters and three maintenance workers.

Voters are likely to choose in the fall election whether to continue paying an existing 8 percent levy on phone, gas and electricity bills, which brings in about $2 million a year. The council has yet to formally place a measure for the tax extension on the ballot but it is expected to do so next month, deciding on the tax rate and its new lifespan.

The roughly $1 million difference in the two approved budget amounts reflects the fact that the utlity tax will continue to be collected through this calendar year, but could be lost for the second half of the 2012-13 fiscal year.

The two votes on the budgets were 4-0, with Councilman Phil Green absent.

Referencing the larger budget, Councilwoman Debbie Long said she was satisfied that the council had sufficiently explored possible cuts without finding significant savings.

"I'm comfortable with this particular budget," Long said. "I think that we've done as much as we can. We've highlighted a lot of points. We may have not been able to make a lot of difference and adjustments to them but we've highlighted them to let everyone know that we're looking at them."  that Councilwoman Debbie Long said about the budget that included the tax renewal."

Councilman Tim Banuelos agreed.

"We've talked about various things we could cut out but they don't add up to much," Banuelos said.

Councilman Roy Swearingen said he's concerned that projections for property tax revenues might prove too optimistic, given the possibility that tax assessor re-appraisals could result in lower property values.

Mayor Pete Murray praised the council and city staff for looking at solutions and employees for accepting salary and benefit concessions in recent years.

"Anybody can steer a ship in a calm sea," Murray said. "It's in a rough sea when people get tested. It's been coming at us in waves. I'm quite proud of our employees, too. They've given their best efforts as well in trying to help the city get through all of this."

Regarding adoption of the tax with the tax renewal, Banuelos said the it was a sobering choice.

"This is really a hard decision but it's better to have plan than not," Banuelos said.

In relation to the utility tax, Swearingen said he's confident that voters will approve the renewal. City Manager Belinda Espinosa said the council's July 17 agenda will include a request to place the tax extension on the ballot.

The attached document includes the staff report with details about the two budgets.