FY 2019/20 & 2020/21 BIENNIAL BUDGET
The City is facing an ongoing budget deficit of $3.5 million per year. Long-term budget challenges have been partly caused by the impacts of low investment returns by the California Public Employees’ Retirement System (CalPERS) over many years, which has resulted in increased employee pension obligations for the City. In addition, increases to contractual services and the rising cost of providing city services has also contributed to the City’s budget deficit. Over the last two years, the City has made significant budget cuts in response to the deficit, which include:
- $1.2 million in spending cuts in Fiscal Year 2017/2018;
- $600,000 in additional spending cuts in Fiscal Year 2018/2019;
- Hiring freezes of some positions;
- No employee Cost of Living Adjustments (COLAs) were given in past labor negotiation.
These budget cuts have placed a serious strain on the City’s ability to maintain city services, including:
- Significant cuts to enforcement of city code violations that cause neighborhood blight, such as abandoned vehicles, graffiti and illegal garbage;
- Elimination of community policing services that help address systemic crime, such as neighborhood outreach, community-oriented problem solving, homeless encampments abatement;
- Elimination of the School Safety Resource Program in June 2019.
Union City residents were given an option to help maintain city services through support for Measures DD and EE in November 2018. Measure DD, a Cannabis Business Tax, was passed by voters and is expected to bring in $1.4 million in revenue to help maintain city services. The voters did not pass Measure EE, which was a Charter City measure with an enhanced Real Property Transfer Tax that would have raised an additional $5 million annually in revenue to help maintain city services.
Important Budget Documents
Upcoming City Council Meetings
- Tuesday, April 23: Budget Study Session
- Tuesday, May 14: Continued discussion
- Tuesday, May 28: Continued discussion
- Tuesday, June 11: Presentation of the balanced budget
- Tuesday, June 25: Public Hearing and Adoption of Budget