Archive for December 11th, 2009

Where is the sense of urgency?
 
The forward observer for the USS Tucson spotted the iceberg sometime ago, but the band plays on.  The City Council declared the we really are “business friendly”.  The forward observer radios back to the bridge to remind them about the iceberg -but- he is remind that there is an election going on so we do not want to alter the course of the ship.  The City manager crisscrosses the City and declares the budget deficit has swelled to $30 million (aka: iceberg).  The new First Mate (Finance Director) arrives on the scene and begins to examine the course of the USS Tucson and the iceberg.  She radios back to the bridge and delivers the bad news: the iceberg is much larger that we thought.  City staff proposes that the RTA could move the iceberg out of the way by taking over SunTran – RTA has said no.  At this point the iceberg can not be avoided, a collision is imminent and we will take on water.
 
Here is what to expect:
Large cuts to city services
Large lay-offs of city employees
Fire and Police represent the largest expense: there will be large reductions here
Lower credit rating
Large reductions to Sun Tran subsidy: higher fares, fewer routes
Increased revenue: tax on services
Fee increases for Park & Rec activities
 
 
These should be considered:
Asset sales:  The city owns significant real estate
Sale-lease-back of city owned buildings: City Hall for example
Converting pension funds to 401-K type retirement plans
Health Insurance: High deductible and HSA’s
Outsourcing some city functions: I suspect the private sector can do better
Significant use of volunteers
(For example, Bloomberg radio was talking about a large city that has cut 100+ attorney positions; but has found retired attorney volunteers who will do some of the preliminary work such as depositions and paperwork)