Facing $3 million deficits and growing for the foreseeable future, the Whittier City Council has moved to privatize some city services, a move officials say will save about $750,000 annually but also means the elimination of 27 positions.

It also could mean laying off of more than half of those employees filling the 27 positions eyed for elimination, according to City Manager Jeff Collier. Of the rest, some will take on new roles for the city, while others will retire.

Collier has been pushing the council to privatize graffiti removal, landscape maintenance and tree trimming services. The council has signed off on the first but still needs to approve contracts for the latter two services.

A sign warns drivers of Whittier tree workers ahead on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

Whittier tree worker Chris Chavez uses a blower to move tree debris off a residential home lawn on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

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Whittier tree worker Scott McFeely removes large branches from a residential home lawn on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

A sign is attached to a tree warning residents of tree trimming on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

Whittier tree worker Dan Rolbiecki uses a tractor to dump large amounts of branches collected on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)



Whittier tree worker Juan Gomez cuts down branches from a large tree on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

Whittier tree worker Dan Rolbiecki uses a tractor to move large amounts of branches collected on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

Whittier tree worker Juan Gomez trims a tall tree using a bucket lift on Starbuck Street in Whittier, Calif. on Friday July 19, 2019. (Photo by Raul Romero Jr, Contributing Photographer)

Mayor Joe Vinatieri, doesn’t like the idea of layoffs but said the city doesn’t have a choice.

“We’re in a very difficult financial bind right now,” Vinatieri said.

This year’s budget began about $3 million in the red and was backfilled by a limited pot of retirement money socked away in the early 2000s. The year before, the deficit was $1.7 million, and higher numbers are expected in the future.

The retirement reserve mostly likely will be exhausted after this year, but the the city still has about $27.1 million in reserves, its rainy-day account.

Whittier is facing ever-increasing employee retirement costs, which are expected to rise by nearly $1 million annually, Rod Hill, director of administrative services, said. Over the next four years, pension costs are expected to jump from the $8.1 million projected this year to about $11 million.

“I hate doing it,” Vinatier said of layoffs. “The city is a family, and it hurt a lot. Our city employees are primo and for many of them it’s more than a job. We understand that.”

Billy Cosby, president of the Whittier City Employees Association, said he is disappointed in the decision to lay off employees.

“The employees they’re laying off provide great quality work for the city and residents,” Cosby said. “It’s very hard. We’re all in shock. This will affect their finances and personal lives.”

The first change is expected to occur Aug. 1 when Los Angeles-based GPC Inc. will take over graffiti removal services. The three employees who provide that service now will fill other vacant positions in the Public Works Department, Collier said.

In August, Collier plans to ask the City Council to expand its contract with Anaheim-based West Coast Arborists, which already provides some tree trimming services. He’s also planning to go out to bid for park and landscape maintenance services.

Some of the employees affected, about six according to Cosby, will take early retirement. But the others will be laid off, Collier said.

Asked if residents will notice a drop in the level of service under the private contractors, Councilman Fernando Dutra said he believes they won’t.

“My expectation is that contractors want to maintain a responsible relationship with our city,” Dutra said. “They’ll be contractually obligated to provide the same level of service we received from our employees.”

Vinatieri said council members will be watching: “If there’s a problem, the mayor will be the first person to speak.”

Collier said an expectged $900,000 savings, which includes $150,000 from cutting in half the city’s support for crossing guard services, doesn’t come close to solving the city’s budget problems. Those savings are already accounted for in this year’s projection of a $3 million deficit.

There are talks of asking voters to approve a local sales tax increase in March 2020.

A half-percent increase in the sales tax on goods purchased locally would bring in about $5 million annually, while a .75% percent hike would net $7.5 million, according to city figures.

The latter is the highest Whittier can aim because the state caps sales tax at 10.25%. The current local rate is 9.5%.

Even if approved, a sales tax won’t nix the need for private contracts, Collier said. The deficit is expected to only grow, eventually consuming any windfall a sales tax increase might bring, he said.