Irvine Weighs Cutting City Work Force by 71 : Government: Officials blame sluggish economy for $4.5-million budget shortfall. Council will consider the cuts when it meets in January.

Faced with a sluggish economy that has sharply reduced revenue, city officials propose laying off as many as 71 municipal workers in an effort to close a budget gap of $4.5 million.

The cuts, which the City Council will consider in January, would affect departments throughout the city and include managers.

The proposal marks the third time this year that City Manager Paul O. Brady Jr. has sought to lay off employees as a way of narrowing budget shortfalls. Last month, the council agreed to lay off six workers after tax revenue fell short of the city’s projections.

“This is predicated mainly on the sagging national and local economy,” Brady said. “The choices we have are tough ones. But they have to be made.”

Irvine’s usually robust economy has suffered in recent years with a slowdown in residential development and because of the statewide recession. Brady said that sales tax revenue and development fees in the last quarter of 1993 were $2.6 million less than what the city had projected.

Council members reached Wednesday expressed support for Brady’s proposal.

“I never like to see anyone in the position of losing their job,” said Councilman Barry J. Hammond. “However, I’ve felt for a long time that the city could be leaner and more efficient in the way we deliver services. I feel bad whenever we have to eliminate positions. . . . But I think it’s best for the city.”

Brady has proposed laying off 51 full-time workers and up to 20 part-time workers. Among the targeted employees are 10 managers. Six of the managers would lose their jobs under the plan while the remaining four would be offered lower-paying positions.

The vacant position of director of administrative services would be eliminated.

Layoffs would be based in part on seniority. Veteran employees whose jobs are eliminated might be offered other positions, forcing the layoffs of less senior employees.

Brent Cooper, president of the Irvine Professional Employees Assn., said many employees were still reading through Brady’s proposal.

“It’s still in a questioning mood at this point,” Cooper said. Layoffs “have been discussed for some time. People are trying to understand what it means.”

Over the last three years, Irvine has eliminated 105 positions at a savings of $12 million, Brady said. The current round of layoffs would save an estimated $3.3 million.

City officials based their projection of a $4.5-million shortfall in next year’s budget on continuing declines in revenue.

The city would trim another $1.2 million by reducing some programs and streamlining services.

Trouble in Paradise?

Sales tax and development fee revenues account for more than 40% of the city of Irvine’s income. Although the former actually increased and the latter decreased from fiscal 1992 to 1993, both fell below projections in each year. FISCAL 1993:

Projected Actual Dollar revenue revenue shortfall Sales taxes $24,149,000 $23,270,199 $878,801 Development fees 2,906,131 2,078,010 828,121 Total 27,055,131 25,348,209 1,706,922

*FISCAL 1992:

Projected Actual Dollar revenue revenue shortfall Sales taxes $22,951,000 $22,472,752 478,248 Development fees 2,699,978 2,573,424 126,554 Total 25,650,978 25,046,176 604,802

Source: City of Irvine