Hollywood Holds Budget Hearing Before Pension Vote

HOLLYWOOD (CBS4) – The city of Hollywood took a first step Monday to solving a multi-million dollar budget shortfall by passing a budget that raises taxes on homeowners, maintains salary cuts for employees and trims millions from employee pension plans.

The city faces a $38 million dollar budget deficit.

However, the cuts to pension plans hinges on a citywide vote Tuesday on a referendum that would trim $8.5 million from the city's pension agreements with fire, police and city worker unions. The city has approximately 1,300 employees.

If that referendum fails -- and union officials have been working diligently to defeat it -- city commissioners will have to choose from other options like a reduction in city services, additional layoffs, salary cuts, privatization of city functions or higher property taxes to cover the shortfall.

"Our pension costs have gone up 320 percent in just the last couple of years," Mayor Peter Bober said after the meeting. "We've got to make these changes."

Union leaders for the Hollywood Police and Fire departments said the pensions were promised to city workers and it's unfair to change them without further collective bargaining. The unions say they are willing to make concessions but the city has walked away from the negotiating table.

"I believe that if they sat down and talked to us and made a genuine effort as an employer - employee to reach a resolution, they would accomplish it," said firefighter Brian Wilkie. "They would get what they need from us."

Broward County Police Benevolent Association Vice President Jeffrey Marano said if the pension referendum passes it will cause good people to leave the city to work elsewhere.

"You'd have quality people leaving for better departments and instead of getting the cream of the crop, you'd get the low lying fruit," Marano told CBS 4's Carey Codd.

Several residents who spoke at Monday's commission meeting blasted commissioners for considering property tax increases.

"A vote to increase taxes at this point, is a vote to make matters worse next year," said resident and landlord Norm Berube. "If you increase taxes again this year, there'll be more foreclosures, there'll be more businesses closed down."

Under the plan passed Monday, homeowners will see an 11% increase in property and fees. That means the owner of a $100,000 home in Hollywood would see an increase of $106 per year in property taxes.

In addition, a property owner would pay $30 more in annual fire assessment fees, from $159 to $189.

The city commission will take a final vote on the budget on September 19. However, that could change if the pension referendum fails on Tuesday and the city needs to rework its' budget.

Bober said the cuts are difficult but necessary and he urged voters to pass the pension referendum.

"At the end of the day, we're hurting people that we know and have worked with for many years," he said. "It's a painful process but if you care about the fiscal solvency of the city, you cannot deny the numbers and pass the buck."