Government salaries and pensions are a major cost factor for Healdsburg and over the last several years they have gone well beyond their civilian counterparts. Control is required.
In past years government salaries were low relative to their civilian counterparts, but job security was high and defined benefit pensions were generous. As the economy has slowed down, the civilian salaries have decreased but the government salaries have steadily increased. Further, the guaranteed lifetime retirement benefits of the government employee have continually increased where the civilian retirement benefits have been significantly curtailed as presented by a 401K retirement account. In addition, investment returns have been significantly reduced in the current economic climate and governments are being called upon to support the high retirement levels with direct funding from the General Fund. This is a significant drain on government budgets that can lead to major reductions in services and have caused several city bankruptcies in California. Healdsburg is current running a budget deficit and unless major reductions in spending are achieved the future is not bright. We must look for new ways to save money and to get a high rate of return on our investments without sacraficing security. Services may have to be contracted out. Although city employees have been generous in accepting cost reductions additional employee give-backs may be called for. There are no easy answers and strong city council leadership is called for.
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