A decrease in estimated revenue and an increase in estimated expenditures have led to cuts that include the proposed layoff of a city receptionist, technology coordinator and Japanese garden specialist.

Administrative Services Director Jesse Baloca reported a summary of the proposed budget to city council on May 5. Baloca said that, even though the city expects an 8.6 percent increase in revenue from $8.2 million to $8.9 million, it is facing expenditures and other costs of more than $9.5 million.

Assistant City Manager Lorie Tinfow said after the meeting that some of the problems leading to the $667,000 deficit include a $530,000 increase in the city's contract with the Santa Clara County Sheriff's Department, a $200,000 increase in California Public Employees Retirement System fees and an increase of $156,000 in state takeaways. She said the state figures could change after Gov. Arnold Schwarzenegger presents the revised budget May 15.

"Right now the government's not talking about taking any more of that," she said, referring to property tax revenue. "But we'll know more after May 15."

Tinfow said the city council cut corners wherever possible, even eliminating council and planning commission stipends that totaled $27,000. She also said the sheriff's department recently agreed to lower its contract fees by $118,000, amortizing the increase over several years. But she said the proposed layoffs are likely to remain unless another solution is brought to the table.

Sam Tarani, the technology coordinator whose position is in jeopardy, said he understands the city's need to cut expenditures, but said he is not sure eliminating positions will even do that. He said the city's plan to use contractors and its current Management Information System assistant to do his job would end up costing it more.

"It's not going to work like they think it will," Tarani said. "The contractors will charge a lot more money than they pay in staff. They're going to hire someone sooner or later—it's impossible for a contractor to do this job. They can't be here around the clock like I am. I've dedicated my time 24 hours a day."

[Tarani, who contracted with the city before being hired as a staff member eight years ago, also said that personal conflicts both he and the office specialist have had with Baloca—who left the city May 6 for a similar position with the City of San Leandro—may have led to their positions being singled out for elimination. He said he was particularly dismayed that the receptionist, who has been with the city for 13 years, and the Hakone Gardens specialist, whose pay has been subsidized by the city for 29 years, were being laid off.]

"I told them, 'Let me go. I can go find something in MIT—this is Silicon Valley,'" he said. "But these other guys, what are they going to do?"

[Office specialist Judy Van Gastel said she was surprised to hear the city had proposed replacing her with an automated phone system.

"Customer service has always been high priority, and the phones especially have always been high priority," she said, adding that her position also includes a variety of other responsibilities that must be fulfilled by a human. "I think the council doesn't quite understand my duties."

And while she said she did not think she had any personal conflicts with Baloca, she said she was not sure he adequately explained her position when recommending the cut to City Manager Dave Anderson.

The city council will hold another budget hearing May 19, and make final recommendations to approve the budget in June.