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Tough
choices were made at Auburn
City Hall last week with
the elimination of up to eight city staff positions. Sentinel file photo.
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As the Sentinel reported in the Feb. 29 edition, cities in Placer County are facing major losses in sales tax revenue. Auburn is the first to make drastic cuts as a response to those revenue shortfalls. In its March 10 meeting, the Auburn City Council approved a resolution to notify the public that a two-year retirement incentive, called the Golden Handshake Program, was going to be offered to eight employees for a 90-day period beginning in two weeks.
Auburn Finance Director Andy Heath said the cost of the program is estimated to be $276,477.14 if all eight employees participate. The cost would not be “up front,” as reported elsewhere, but would take effect over the next two years. Heath estimated the maneuver would save the city some $640,000 annually.
Airport Manager Jerry Martin wasn’t happy with the way the city handled the layoffs. “I’d like to confirm publicly what I’ve been told privately, that the airport manager position is being eliminated,” Martin said. “I don’t understand this. The airport (has been) in the black.” Martin said he wasn’t consulted regarding his layoff or the future of the airport. Three airport users spoke in Martin’s defense, trying to salvage his job, during the public comment portion of the meeting. John Nielson is a hangar renter and pilot who said the airport is a gem for Northern California. “This is a destination spot. This is a friendly field,” he said. “You go out there on a weekend (and you’ll) see lots of ‘$100 burger’ weekend warrior pilots.” He said pilots fly into the Auburn airport for lunch (hence the $100 burger) and shopping or other activities. "It’s a busy field,” he said. “I’m very loyal to this airport.” Nielson said that Martin has always been responsive when something needed to be done.
The city plans to have current staff members handle the airport
manager’s duties, which leaves Nielson wondering about the future of
the field and whether the needs of the users will be met. “Keep an
airport manager on the field (on a) daily basis,” he said. Richard T.
Anderson, owner of T.G.H. Enterprises, said he’s invested money in the
buildings he leases from the city at the airport and the loss of Martin
would be a devastating blow. Richard Sanborn said he’s worried about
the fate of the airport without a devoted manager. “You can divert the
funds from the airport, that’s for certain, but you better make sure
the job gets done,” Sanborn said.
Elisabeth Davis is an 18-year
employee of the city working as a senior accounting technician in
charge of payroll. She said she was told she no longer had her job
after the end of March. “We weren’t given a choice,” she said,
referring to the so-called voluntary participation of the Golden
Handshake Program. “The Golden Handshake is a good thing, but it won’t
compensate me for two year’s lost wages.” Before being let go, she said
she was just two years from retirement. Davis told the City Council
that she’s seen the city’s payroll increase by $1.3 million within a
very short period of time. “We went from $5 million to $6.3 million in
just two years (and) we didn’t hire that many people,” she said. She
said the majority of the raises went to the city’s management staff but
acknowledged the increases also included the salaries of public safety
personnel.
City Councilman Kevin Hanley said the city knew it
was facing tough choices. “The last couple of years, the city looked
closely at economic development because we knew, with the city’s
structure, we couldn’t pay our people as much as we wanted to pay
them,” he said. Hanley said the city tried to lure retailers to the
area to help drive sales tax revenue, but their efforts didn’t pan out
in time. “There was a major downturn in the economy,” Hanley said.
“This is one of the hardest decisions I’ve faced in the six years I’ve
been on the council.” Mayor Keith Nesbitt echoed Hanley’s remarks.
“There are certain times on the council that we make gut-wrenching
decisions and this is one of those times,” Nesbitt said. “I’m sorry
(but) this is what we were elected to do – to keep the city solvent.”
SALES TAX REVENUE
Third Quarter 2007
compared to same time 2006
Fourth Quarter figures will be available at the end of March.
Auburn – 8.5%
Colfax – 19%
Lincoln + 4.3%
Loomis – 22%
Rocklin + 6.8%
RESTRUCTURING PLAN
Up to 8 Auburn city employees were offered a “Golden Handshake” 2-year retirement incentive plan.
Cost to city:
$276k payable in 2 years
Savings: $640k annually
Next City Council meeting will be March 24.
Cuts are “across the board,” according to City Manager Robert Richardson, and include management.
Airport Manager
Jerry Martin confirmed his position is being eliminated at the end of the month.
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