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Council questioned reference to an `unbalanced budget " , which City Auditor- <br /> Accountant explained would involve using savings from prior years to keep in <br /> balance , thus enabling City to carry on for one year , after which it would be <br /> necessary to increase taxes . In response to question as to whether the Civic <br /> Center project was in this budget , Auditor-Accountant advised those funds <br /> had been set aside and were untouched . It was also his feeling that there <br /> was danger in not providing for capital improvements , since there are <br /> continuing demands which if allowed to accumulate would be impossible to <br /> finance . There was discussion concerning salaries and other added costs <br /> such as for safety workers ' retirement , and City Manager felt the regular <br /> employees can be expected to ask for the widow ' s continunance already granted <br /> safety workers , He noted also that the Retirement Board has recommended to <br /> the Governor an increase in retirement to 7% . Personnel has been asked to <br /> begin recruitment for the four Fire personnel who were approved to compensate <br /> for the reduced working hours . Mayor Bury questioned the potential for <br /> reducing the work force , and City Manager advised that during the negotiations <br /> it was pointed out to the employee groups that an increase of 8% in employee <br /> costs would mean operating with proportionately fewer people . He indicated , <br /> however , that if building picks up , it will be necessary to rehire one of <br /> the two building inspectors who left six months ago . He noted , in addition <br /> to Redwood Shores , that several building projects are under way , including <br /> Challenge Developers , United California. Bank and Ampex , and this would — <br /> require an additional inspector . A request has also been received for <br /> one or two inspectors to assist in the Los Angeles earthquake area , for <br /> which City would be reimbursed . Councilman Henderson expressed the belief <br /> this would provide valuable experience . <br /> City Manager spoke of another problem that would need to be resolved , <br /> having to do with the Battalion Chiefs , whose take -home pay , he said , was <br /> less than the Fire Fighters , due to no overtime or holiday pay . He advised <br /> that he had discussed the matter recently in the Fire Chief ' s office , and <br /> holiday pay for the Battalion Chiefs was recommended . City Auditor- <br /> Accountant advised , in response to a question , that such pay would amount <br /> to approximately $ 11 , 000 per year , He indicated that all positions <br /> budgeted for this year would be included in the next year ' s budget , and <br /> that at present , there are 14 unfilled , but budgeted positions , and 35 <br /> fewer employees than at this time last year . There was additional <br /> discussion of the need to fill certain positions , other than the Fire <br /> Fighters and Building Inspectors , such as a Programmer , to utilize the <br /> computer and to inaugurate the utility billing , and two library positions . <br /> City Manager reviewed the positions which have been vacated during the <br /> current fiscal year . <br />