Due to the budget deficit, will there be furloughs or layoffs?  

No, currently, we are not looking at furloughs or layoffs. The City’s financial situation is not dire enough to require furloughs or layoffs, but the economy’s future is uncertain. We are actively working on alternative solutions to prevent those from occurring, and it is the last option in the event of an unresolved structural deficit. 

Does the deficit affect all departments equally?  

The budget deficit can affect departments differently depending on various factors, including mandated services, revenue sources, and citywide initiatives. In partnership with the Finance Department, department directors have worked diligently to cut discretionary funding where feasible. The City Council did not want to take an austerity-only approach – in other words, they did not want staff to balance the budget with blanket cuts across departments, which would severely impact services. Instead, the Council directed staff to take a hybrid approach using one-time balancing strategies and focus on revenue increases and expense reductions. All departments must work together to decrease expenses and increase revenue, but depending on the department's function, that will look different to each department. 

Will engagement and Recognition Week activities be cut?  

Employees are the City's most valuable assets. The Employee Engagement Committee will continue to plan events, and Human Resources will still organize Public Service Recognition Week. The events and recognition may change to reflect fewer available resources, but we will continue to recognize the excellent work our employees are doing to serve the Fairfield community. 

With all the development going on, how can we not project more revenue?  

The forecasted revenues consider development, but there is a slowdown in development activity. One of the challenges with development, especially industrial, is that we cannot accurately estimate what will be inside the building and the tax revenue it may generate for Fairfield. Different tenants generate varying levels of revenue, and the City cannot control the type of tenant that will fill an industrial building. 

If 72% of what we spend in the General Fund is staffing, it seems like some of the other things we are talking about for cost savings will not be enough. At what point in time does personnel become a factor?  

This is where the efficiency comes into play. How are we doing business, and are we doing business in the most efficient way possible? While we aren't talking about furloughs and layoffs, there may be need at the mid-year budget to look at freezing or eliminating vacant positions. If increases in efficiency, or streamlined service delivery, allows us to continue delivering services without further burdening our already hard working employees, then frozen or eliminated vacancies can decrease budgeted expenses and help alleviate the deficit.  

What are other cities doing to address their structural deficit?  

We are not the only city dealing with a structural deficit. Some surrounding agencies, such as Benicia and Suisun, are looking to increase their sales tax rate through a ballot measure. Other larger cities in the Bay Area have used one-time funds as they look at possible solutions to solve their deficit.