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City Manager, Carlos Urrutia, announced that the Management and Confidential employees have agreed to a 5% wage reduction for fiscal year 2009-10. This will be accomplished through 13 furlough days during fiscal year 2009-10 and is part of an overall effort to reduce City expenses to adjust to the current economic climate.

The Management and Confidential units total 50 employees. Urrutia stated that he was pleased about Management and Confidential Units’ willingness to participate in efforts to reduce costs. ‘Our employees understand the reality of the fiscal situation and have been willing to do their part to help’, said Urrutia. The City is currently negotiating with the Public Service Employee Unit, represented by AFSCME, to achieve the same furlough plan for the rest of the non-public safety municipal employees.

Previously, the City reached agreement with Police and Fire Units to postpone for two years increases negotiated in previous years with these employee units. Urrutia stated that he had recommended to the City Council during the budget hearings that City Hall offices be closed on Fridays to ease the impact of personnel reductions and the furloughs. Urrutia stated that the 2009-10 budget currently includes 270 full time employees, a reduction of 40 positions from the 310 employees authorized in the 2008-09 budget.

The reductions were achieved through freezing vacancies, early retirement incentives, and layoffs.

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