Revised contracts calling for wage cuts through furloughs amounting to nearly a 10 percent reduction
in wages will come before the Garden Grove City Council Tuesday night.
The city has negotiated deals with two employee groups – the Orange County Employees’ Association and the Orange County Employees’ League – that call for the elimination of planned 2 percent pay increases, along with reductions in pension plan benefits and the furloughs. The furloughs would amount to a 9.97 percent annual pay cut.
Expected benefits to the city’s general fund are about $1 million annually.
However, the memorandums include some “what-ifs” which would provide wage increases if some planned redevelopment projects such as the water park hotel or the “Site C” hotel project (both on Harbor Boulevard) break ground by June 30, 2014.
Also on the agenda for Tuesday night is adoption of a increase in the paramedic tax that will cost residents about $30 a year and provide the city with an additional $1 million in revenue. Garden Grove is facing a $4.6 million deficit in its general fund.
Additionally, the council will consider an implementation agreement with Garden Grove MXD, LLC for the construction of the water park hotel and restaurants on a 10.3 acre site on Harbor Boulevard, south of Lampson Avenue.
The council meets in the Community Meeting Center, 11300 Stanford Ave. at 6:30 p.m.
