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California City council approves $1.2 million in immediate budget reductions amid fiscal crisis
Summary
Interim City Manager presented $1.237 million in immediate savings through line-item reductions, contract cancellations and staffing changes; council approved the package with one 'no' vote and directed staff to review several long-term contracts.
The California City Council on Feb. 10 approved an interim package of expenditure reductions intended to shore up a budget shortfall and move the city toward a structurally balanced fiscal year. Interim City Manager Grayson presented a multi-part plan totaling approximately $1,237,049 in reductions and modest revenue adjustments.
Grayson told the council the plan comprises three categories: $673,499 in line-item department cuts (salaries, travel, supplies and contract savings), about $310,000 in contract expenditure reductions (including discontinuation of the Price Page contract), and staffing-related measures estimated at $212,500 for the remainder of the fiscal year and about $700,000 on an annualized basis. He also proposed an incentive program for voluntary retirements and a hard freeze on management hires.
Council members debated timing and potential service impacts. Several speakers from the public and the California City Employees Association urged the council to exhaust non-staff options before layoffs; the union president, Harvey Brown, asked the council to prioritize maintaining essential services and warned of operational risks from cuts. Council member Smith said the reductions were necessary and urged prompt action; Mayor Pro Tem Creighton voted no on the final approval.
The council approved the measure by roll call: Council member Clark yes, Council member Smith yes, Mayor Pro Tem Creighton no, Mayor Hawkins yes. Staff noted some savings (for example, contracting fire services to Kern County) were already realized and that additional reductions would likely be required in the next budget cycle.
Council also gave direction to review multi-year contracts flagged by members, including Diamond IT and a five-year VHT engineering agreement, and to return with options for further savings. Grayson said certain actions, such as layoffs, would require statutory notice and could not be implemented instantly.
Next steps: staff will implement the authorized line-item and contract reductions, develop the voluntary separation program details and return to council with additional contract-review findings and a timeline for longer-term structural changes.
