VACAVILLE — The city and the its main employees union have agreed to a new memorandum of understanding that targets concessions to keep the city’s budget balanced. The proposal awaits City Council approval next week.
The proposed agreement, which comes after several months of negotiations and well after the previous agreement expired, includes a reduction in concessions as the city’s economic outlook improves. The proposed agreement also leaves the city with an overall budget deficit.
According to staff reports, the previous agreement, which expired June 30, included the equivalent of a 13.2 percent salary reduction.
A temporary set of concessions to cut city spending included a 10.14 percent contribution toward the employer rate of the Public Employees Retirement System, one furlough day per month and one paid time-off day per month. The proposed agreement includes an 8.82 percent base wage reduction, but eliminates the 10.14 percent PERS contribution and the monthly furlough day.
Vacaville is collecting a 0.25 percent sales tax from Measure M, passed by voters in November. The money is going toward restoring services and re-opening City Hall for business on the first and third Fridays of each month.
The reduced concessions reflect the shrinking operating deficit in the city’s 2013-14 budget to $1.2 million, down from about $4.4 million when the previous labor deal was reached.
According to the staff report, the memorandum of understanding is good for two years, but if non-Measure M revenues continue to rise, the city can further reduce concessions in January 2015.
The council is set to vote on the agreement during its regular meeting at 7 p.m. Tuesday at City Hall, 650 Merchant St.
Reach Mike Corpos at 427-6979 or email@example.com. Follow him on Twitter at www.twitter.com/mcorposdr.