Steve Salomon’s last day as interim city manager is today. (Courtesy photo)
Steve Salomon, whose tenure as Benicia’s interim city manager ends today, outlined the city’s accomplishments in the last seven months and provided future suggestions for the city in a final staff report that went undelivered at the Feb. 7 City Council meeting due to time constraints. However, the item has been scheduled for Tuesday’s council meeting, where members are encouraged to review the report, discuss and give direction on any item the council would like to see pursued further.
Salomon was appointed as interim city manager in July after former City Manager Brad Kilger left for a job as the city manager of Martinez. Salomon, who had previously been the city manager of Visalia, reflected on his time as city manager in his last report and gave recommendations for the city moving forward.
Salomon described the city’s financial situation as fragile but noted that it has improved since 2014 when voters approved Measure C to provide a 1 percent sales tax.
“However, in 2014, the city’s situation was dire and Measure C was needed just to maintain city operations,” Salomon wrote. “For the 2017/18 (fiscal year), it is estimated that $1.7 million of the $4.5 million in Measure C will go directly to the General Fund to maintain operations.”
Salomon also noted that the city’s revenue base was troubled, with the Utility Users Tax revenues having decreased by more than $460,000.
“We expect this revenue will continue to decline due to changes in technology and the limited ability to address these changes without voter approval of an amended Utility Users Tax,” he wrote.
Salomon also noted that Benicia is facing rising pension costs and faces increasing turnover in city staff. According to Salomon, the Public Works Department has had 43 percent turnover in the last three years and the Police Department had 25 percent turnover in the 2014-15 fiscal year.
“This turnover and inability to recruit is caused by a number of factors,” he wrote. “One is compensation. The city simply cannot compete with other local jurisdictions. The organization has less corporate memory than is acceptable. Significant monies are lost when newly trained personnel leave. Addressing compensation must be a high priority.”
Salomon suggested establishing a goal of maintaining a 25 percent reserve rather than the current policy of 20 percent, implementing a policy to set aside funds each year for pension costs, carefully reviewing the fee report by government finance consulting firm NBS, expediting the review of marijuana-related usage in the wake of Proposition 64’s passage, charging development impact fees for general capital facilities, re-establishing the city’s internal employing training program which was eliminated prior to the Great Recession and paying attention to altering reuses allowed on specific streets the next time the city reviews its zoning and General Plan.
Additionally, Salomon provided a list of the city’s accomplishments during his time as interim city manager. These included the City Council holding a final vote on Valero’s Crude-By-Rail Project, accepting the Climate Adaptation Plan, completing recruiting and interviewing a new library director, appointing acting staff after Assistant City Manager Anne Cardwell resigned, completing two Emergency Operations Center trainings in preparation for the January storms, completing the refinancing of the Solar Project Funding, approving the Hazard Mitigation Plan, adopting California Environmental Quality Act documents associated with Benicia’s Water Reuse Project, completing Measure C’s promenade railing project, approving a new fire department first responder fee for medical services and more. He also noted items currently in the works, including initiating negotiations to upgrade Fire and Police Department radio communications, designing and installing new automated water meters and constructing additional Bocce ball courts.
Jim Lydon, chief of the Benicia Fire Department, will serve as acting city manager until a permanent successor is hired. To read the full report, go to https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/52585/Staff_Report_-_Acommplishments_and_Recommendations.pdf.
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There is much more to this article. I do hope the residents retrieve the whole article. It will open your eyes to our financial difficulties. There are many.
Always half the ledger sheet …. Budget shortfalls and financial problems always are discussed from a revenue point of view.
What about addressing outlays?
Before we discuss additional revenue enhancements (taxes), the city needs to justify and explain spending and savings.
I believe that anyone who has followed anything I say know what I say is true. CalPers and Wolfe are just two examples. The out lay is a problem and many are set in stone. Services, salary and benefits, CalPers just to mention a few. The city council is unable to move on any with employee and service cuts at the top of the hit list. I think you will find the Council has no guts for that at present. It will take a major issue to happen. One just did with the city contributions to CalPers. Mark my word the council might try to pass part of that on to the employees. Kiss of death. But remember without revenue stream something will have to give. The employees get the first hit and then services. It will be discussed at length. With the two Socialist leading the way.
Agreed. It is a fundamental problem with the state of California; government employees are compensated at extraordinary levels with unbelievable benefits. It is siphoning off state assets. We have the third highest tax rates in the country yet no money for infrastructure or needed services. All revenue goes to state employees. The SEIU runs the state.
So the only answer is raise taxes … The state is in a death spiral.
This article has some far reaching comments. One being the 2016 sales tax revenue of 215,000 and the 21 million in economic activity on First Street. That appears to be a big accomplishment. But is it? No! In 2007 First Street generated 193,435 in sales tax which meant 19.3 million in economic activity on First Street. A nine year span of an increase of about 22,000 in tax revenue. An 11% increase in nine years or one could say a 1.2% increase by year. That is not good. The other far reaching statement is that during the Great Recession the only economic sector in Benicia that saw growth was in our downtown, precisely during the time when the city initiated its contract with Wolf Communications. It was not growth it was recovery of sales tax at an initial investment of $280,000 for the first two years. Not good. Those Great recession years saw a lose of sales tax revenue and all city’s not just Benicia were in a recovery mood. In a city like Benicia time is what will make recovery happen. During that recovery time some business will leave or go out of business. That expense of $280,000 did not prevent that. It took time to get back to previous tax revenue peek. It appears it has stabilized and could move forward at a very slow pace. I will say it again “Benicia is not a great tourist destination” other comments confirm that. I will always support Benicia but in a very realistic and accountable way. I do want Benicia to have a very vibrant economic atmosphere. It needs a very strong long term plan with accountability to confirm it is working.
This comment was meant to go under the Christina Strawbridge: Benicia is a great tourist destination. But it does work here also. Happy President days.