Garden Grove Journal
At the March 13 meeting, the City Council approved a reduction in salaries for all top staff in the city.
The changes include:
• Retracting a 2 percent cost of living increase that was expected to start in July;
• An eight-hour per month furlough, which equals a 4.61 percent cut in an employee’s salary.
• Buyouts in which employees are offered a severance package in return for their resignation.
The council’s decision affects 92 management level employees.
“Hard times bring hard decisions,” said Mayor Bill Dalton. “Because we’ve been proactive rather than reactive to our situation, we’ve been successful in cutting corners without cutting labor or services, but at some point, something has to give.”
The moves are expected to save the city about $583,000 annually.
However, the city is to extend those savings by negotiating with employee unions for similar concessions. Additionally, the City Hall could be closed one of the two open Fridays each month.
Also being proposed is an early retirement incentive for eligible employees. The city council will consider such a deal at a later meeting.
There are some bright signs on the horizon, though, according to City Manager Matt Fertal. Major redevelopment projects already approved should “provide the financial stability Garden Grove needs to continue building a solid future,” he said.