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Maintain present budget priorities and reserves:
- The Fire District Board has taken a conservative approach to the current economic down turn. The capital improvement plans to replace two of the Fire District ageing Stations and upgrade another have been scaled back.
- At present the budget is on target and reserves are sufficient to carry the Fire District through the dry funding period. Why can't we use the reserves? The Board is concerned the State of California will take nearly $3 million or 8% of our budget away. Also, we are concerned that the state's retirement system (PERS) will increase their required contribution by 8% to nearly 48% of payroll. Because we get tax revenues paid twice a year, we must keep a half-year's budget or about $ 15 million in reserve, and we need to keep another $10 million in reserves for apparatus, equipment, and station replacement, among other needs.
- I have supported the conservative approach, at present we have not received any definitive information from San Mateo County or the State of California on funding take-backs for ERAF contributions or increases in the PERS rate. I believe it is fiscally prudent to maintain service to the community and stay within budget. Future revenues at the current rate are in doubt. My number one priority is to maintaining the same level of emergency response and service to the community.
Seek alternative retirement options:
- The present PERS retirement system 3% @ 50 is unsustainable. At present there is no definitive information from PERS, they may require increased contributions of 8% or nearly 48% of payroll at this point, no one know for sure. I propose looking at other retirement options, I understand the present retirement system and know of other options that might be available to the Fire District.
Improve relationship with Fire District employees:
- Present relationship with the Fire District employees maybe a reflection of the economic down turn. At the time the Fire District entered into negotiation the economic climate was just beginning to show a downturn. Today's economy is much different than in October 2008. The reality of the economic decline continues to develop as we move forward and continue to be concerned about some primary issues;
- Reduced property tax revenues
- Increased PERS pension cost
- The intent of the State and County to take monies from local government agencies to balance their budgets
- Cash flow management
- I believe the Fire District employees are willing to work together with management and the District Board to provide and maintain the current level of emergency response and service to the community. I'm willing to work on improving this relationship.
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