Deal could result in $20 million annual ongoing costs to the city’s general fund.
Roughly two decades ago, the San Jose City Council agreed to union contracts with costly pension benefits that plague the city to this day. The labor-backed deal resulted in a devastating reduction of the city’s police force and severe cuts to library hours and parks maintenance work.
The end result? This year’s budget won’t be largely impacted. But a back-of-the-envelope projection would add $20 million in annual ongoing costs to the general fund in the third year of the deal. That’s enough, for example, to hire 80 to 100 new police officers at a cost of $200,000 to $250,000 per officer.
City Manager Jennifer Maguire is expected to unveil the city staff’s projection of the costs of the agreement at Tuesday’s meeting. Don’t blame Mayor Matt Mahan. He wanted the City Council to stand firm on what was deemed by the city to be its final offer. But councilmembers Peter Ortiz and Omar Torres were among those pushing for a more generous contract.
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