The Economy - The biggest challenge facing our city leadership is the economic pummeling our area has taken. $2M less per day is being spent in the city of Sacramento than in the previous year. When the economy contracts so dramatically, then our city revenues, budget, and spending must downsize as well. There is no way around the hard decisions to be made immediately and in the near future. At the state level, we see the catastrophe of decision avoidance and irresponsible governing. We must have responsive and responsible leadership for our city that makes the hard choices, places high standards for city staff, and protects the interests of the citizens - especially those with little voice or influence.

City Parks - Parks in the city are the most intimate and continuous contact between the city government and residents. Go to a playground or ball field or running track or city pool and you will find every strata of Sacramento using these parks - families, dog walkers, sports teams, seniors, high-income, low-income, and most particularly kids. If our parks aren’t decent, where do city kids go to run or climb around or just play outside? Like all municipal departments and services, there must be drastic cuts when city revenues have fallen so dramatically. The Park Maintenance Services actual spending for FY 07/08 was $13.9M and cut to $11.8M this year. The proposed budget cuts another $2M out to $9.7M. I can not accept that the city department can’t maintain our parks for $9.7M without the draconian service cuts that have been proposed. Close some restrooms, stagger some mowing schedules, but these cuts should not stop effective park maintenance. Once again, the management cuts are not in line with cuts in front line staff.

Utility Fees - The city government is broadly responsible for water, sewer, and solid waste disposal. These enterprise funds make up the majority of budgeted spending by the city, with nearly $490M of the total $875M. Enterprise funds must be self-sustaining and self-funding. The city council is involved by setting rates for these utility services. The May budget from city staff and the city manager proposed a remarkable 25% increase to the Water Fund and a 15% increase to the Sewer and Solid Waste Funds - for next year and the year following. This type of outrageous proposal should not even make it to publication in the budget proposal and reflects a city staff that is tone deaf to the surrounding economic crashes. The city council voted to increase the utility rates by 9% this year and 9% next year. That means in about 13 months residents will be paying 19% more than the current rates. By starting with a 25% recommendation, the staff gives the council the appearance of fiscal responsibility by only approving a 9% annual increase.

Although the money from utilities is supposed to be kept within the enterprise funds, more than $2M goes to the general fund from the solid waste authority. The city's solid waste fees are the highest in the region and city staff has not pushed hard enough to bring down solid waste costs, including returning recycling bin pickups to a bi-weekly schedule. My family is militant about recycling, but our large blue recycling bin is rarely full each week. However, staff did not even recommend a return to this schedule and the savings it would deliver.  Recycled waste does not pose the health hazard of regular garbage pickup and should be handled more cost effectively.

The Budget - Our city budget is the framework that the city council must work under for spending in 2009/2010. The 313 page document proposed in May gives a realistic and credible overview of the challenges to operate the city government with reduced revenues, while service demands increase. The real work for the city council is to dig into the departmental service cuts, proposed revenue increases, police and fire protection, and organized labor negotiations and be willing to demand where deeper cuts are needed and which city services must be protected. The reality is that we have dramatically less revenue for the city and we must also have a dramatically reduced city government. This is the environment that demands responsible leaders who look out for the interests of all Sacramento residents. Although the budget was approved by the city council, next year's budget is already in the red because reserves were used to keep this fiscal year in balance.

Civil Servants - Police, fire, maintenance workers, lifeguards, engineers, managers, receptionists, planners, etc. make up the civil servants for our city. They deserve our respect for the jobs they perform. But civil service unions and advocates must acknowledge the general fund's $50M deficit and respect the sacrifices being made by everyday citizens throughout Sacramento. Negotiations to modify existing labor contracts are underway to forego wage increases and modify current agreements. In the end, these are being used to save city jobs and lower overall labor costs. But to be clear, if some of these negotiations fall apart, then layoffs and cuts must continue. Wage freezes and furloughs have become a painful, but necessary part of the city's plan to bring costs in line with revenues. There can be no city department or agency that can remain untouched and given sanctuary in these times of sacrifice. Managers must bear an equal or greater burden of layoff notices with the front line staff.

These are simply a few of the significant issues immediately facing the Sacramento City Council. I will be happy to discuss other challenges and concerns for the city as they come to the forefront.

Kasey Cotulla

The chairman of the Utilities Rate Advisory Commission resigned because of the size of the proposed rate increase from his committee.