Jun 6, 2008

Promising plan to cut city costs

Editorial

San Mateo city officials are wise to consider contracting out maintenance work to reduce a budget deficit because, as leaders in Vallejo have shown, municipal officials who ignore fiscal constraints today may pay for it dearly tomorrow.

Faced with soaring employee costs and falling tax revenue, Vallejo filed for bankruptcy late last month because it can't afford the employee contracts it had already approved. Some in the city say contracts with police and firefighters were too generous.

Fortunately San Mateo's financial difficulty pales by comparison. It faces an ongoing $2 million shortfall it can initially cover with reserves. The city drew the ire of the Service Employees International Union, however, when it began eyeing a longer-term fix - job cuts and contracting out maintenance services. But these options must be on the table while the city balances its books.

About a half-dozen jobs at the city-run Poplar Creek Golf Course could be replaced through a service contract. The golf course is losing money and, more important, it is not a vital city service. Private-sector alternatives for golf course maintenance abound. And many could perform the work more efficiently and cheaply than a city could.

The cost-saving moves may not stop there. San Mateo also has formed a consortium with other cities in the region to seek proposals for street-sweeping services, said City Manager Arne Croce. Furthermore, the city already contracts out for tree trimming, vehicle fleet maintenance and janitorial services. The news is not all bad for workers. Croce stressed the city requires service contract providers to pay prevailing wages and offer workers health benefits.

It often makes sense for cities like San Mateo to contract out work routinely provided in the private sector, while having city workers provide essential functions like police and fire service. The cities then can focus more of their energies and our tax dollars on vital operations while holding down costs.