The City of Vallejo, which filed for bankruptcy roughly one year ago, and has many parallels with Alameda (closed Navy base, declining revenues) is getting set to fire their City Manager, just a few weeks after the City of Alameda ousted theirs.
The San Francisco Chronicle is reporting that Vallejo is
preparing to fire City Manager Joe Tanner 2 1/2 years after he took the helm of the beleaguered North Bay city, which in May 2008 became the largest California city to declare bankruptcy.
The City of Alameda forced the resignation of former City Manager Debra Kurita on February 26 of this year, after it came to light at a February 7th all-day budget workshop that the City’s general fund net cash balance – the actual amount of cash the City has to work with – was much lower than City Council realized. At the April 21 City Council meeting, the interim City Manager Ann Marie Gallant explained that the City’s general fund net cash balance – after accounting for workman’s compensation expenses that had accrued over several years in contravention of best practices, and other expenses – was only $1.8 million.
The May 5th City Council meeting promises to be a tough one for Gallant, as she has to bring forth proposals to float the sinking General Fund, which are rumored to include layoffs of city staff. (At the April 21st meeting, city unionized employees were in attendance wearing union t-shirts.) One of the proposals apparently will be to pay off the $4.6 million in accrued liabilities over three years, rather than in a current lump sum payment.