IRVINE : 3 Layoffs Proposed by City Manager

City Manager Paul O. Brady Jr. said the City Council should lay off three people, including a high-level manager, in order to keep more money in emergency reserves.

A month ago, the council asked Brady to show how the city’s budget could be cut to keep $6 million in reserves. Two councilmen have been urging the city to add an extra $1.7 million to the reserve fund in order to keep 5% of the city’s general fund budget as a cushion against a disaster or a prolonged recession.

Brady has proposed laying off three people to cut an extra $200,000 from the city’s 1991-93 two-year budget to go along with $1.5 million in other reductions. Until recently, Brady had repeatedly told the council that layoffs were unnecessary for the city’s financial health.

If the council chooses tonight to cut the staff positions, Brady is recommending that the council eliminate the manager of advanced transportation systems, one building inspector and one development plan checker.

Cutting the advanced transportation manager would save $82,000 a year. The post is held by Douglas C. Reilly, who also acts as the executive director of the Irvine Transportation Authority. Eliminating the two other positions would save $115,000 a year, for a total of $197,000.

If the council eliminates these positions, it would mark Irvine’s first layoffs of permanent staff in response to the recession.

During past discussions about the city’s budget, Brady has argued that cutting staff is often a bad approach because the city loses experienced people. Two councilmen, however, have criticized Brady for maintaining a budget that seems geared more toward saving jobs rather than preserving important city services.

The council’s action tonight on the budget might not be the last major spending decision facing officials this year. In drafting the state’s budget, legislators are proposing cutting funding to cities that could reduce Irvine’s revenue by about $4.6 million. If those cuts occur, Brady told the council in a report last week, the city would have to make severe cuts in staff and services.