Features

After weeks of briefings on the city’s looming $7.5 million shortfall, Berkeley’s City Council today (Tuesday) will get its first look at next year’s proposed budget. 

As part of Mayor Tom Bates’ strategy for giving extra attention to budgetary issues, the budget presentation is the only item on the council’s agenda slated for debate. 

The budget plan was not available at press time Monday. 

City Manager Phil Kamlarz’s recommendations, as listed on the meeting agenda, include implementing a two-year approach to eliminate the structural budget deficit, minimize layoffs, maintain a general fund reserve at a minimum of 6 percent of revenues, and use unexpected revenue for capital improvements like street repairs. 

Kamlarz has previously proposed that the council spend $3.5 million from higher than expected property tax revenues on a new police dispatch system, the city’s lawsuit against the UC Board of Regents over the UC Berkeley’s Long Range Development Plan, street repairs and a match for a solar bond fund. 

Councilmember Kriss Worthington is asking that the council also set aside $100,000 to develop an implementation plan to take over the purchasing of electrical power from PG&E. He believes if the council acts quickly to show they have a plan in place, Berkeley would face lower exit fees from the utility company if it opted to negotiate its own power contracts. 

The combination of rising employee benefit costs and a sluggish economy have resulted in a structural deficit that forecasts shortfalls through at least fiscal year 2009. Kamlarz has ordered city department heads to cut budgets 10 percent for fiscal year 2006, which begins in July, and 6 percent for 2007. Additionally the council has given Kamlarz authority to consider closing non-essential city services once a month starting in July to save approximately $2.1 million in salaries. 

The council must adopt a balanced budget by the end of June.