Claims that the city’s development department did not retrieve fees from developers in recent years have raised questions of whether some of last year’s layoffs could have been avoided.

At one point last year, the city had a $50 million budget gap. The Community Development Department was hit with 27 of the city’s 102 layoffs, according to economic development spokesman Maurice Chaney.

Sacramento is now struggling with a $35 million-$40 million budget hole for the 2010/2011 fiscal year.

A third-party auditor will investigate claims that the development department waived, undercharged, deferred or did not retrieve development fees, City Auditor Jorge Oseguera said.

In a phone interview last week, City Councilwoman Sandy Sheedy asked whether the possibility of unpaid fees could be linked to the situation last year that resulted in layoffs.

“We laid off a lot of city staff,” Sheedy said.

An official with a union that represents city employees also connected the two issues of layoffs and claims of unpaid fees. Joan Bryant, director of public employees for Stationary Engineers Local 39, said the union is seeking more information about fee issues at the department.

Photo by Anthony Bento.

Kathleen Haley is a staff reporter for The Sacramento Press.