Officials watch Sacramento for more takeaways
Wendy Leung, Staff Writer
Created: 07/05/2010 09:00:19 PM PDT

RANCHO CUCAMONGA – Three weeks after the city passed a $91.8 million budget, city leaders approved a number of measures to address recent budgetary changes, which include a $1.4 million hit due to the outcome of the San Bernardino County sheriff’s contract negotiations.

Last week, the City Council approved the allocation of $150,000 in law enforcement reserves to facilitate schedule changes proposed by the Sheriff’s Department. City leaders also directed staff members to draft a contingency plan to prepare for possible loss of redevelopment funds and to strengthen funding for employees pension reserves.

The move comes in light of several changes affecting the city’s budget including a rejection by the county’s Safety Employees Benefit Association to postpone raises. The city’s law enforcement officials are contracted through the Sheriff’s Department.

City Manager Jack Lam is also closely watching Sacramento as legislators continue to wrestle with the state’s massive budget deficit.

“There’s all kinds of changing dynamics,” Lam said.

Earlier this year, the city lost more than $32 million to the state. It will lose another $6.6 million this fiscal year. Depending on how the state will eventually balance its budget, the city could lose another $6 million to $7 million.

The potential for additional state takeaways could mean a longer delay to the reconstruction of the San Bernardino Road fire station. It could also completely deplete the construction funding for the Arrow Highway/15 Freeway off-ramp project.

Also on the minds of city leaders are anticipated increases to health premiums. Premiums of the California Public Employees’ Retirement System, which applies to fire district workers, is expected to increase about 9 percent by 2011. Health premiums of other City Hall employees could also increase 6 to 11 percent.

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