IF City Manager was doing his job he would have reported that he could cut his pay in half and cover about half of the budget shortfall for the up comming year. He could also suggest to the City Council to stop all trips, and travel expences they make to learn how to use Eminent Domain. The City could end it's support for the California "Welcome Center". Just for starters long before they suggest cut back in law enforcement.
The City could Sell the City Owned and Insured Car the City Manager Drives.
Just a FEW SUGGESTED CUTS the city could make.
Those "Reserves" are funded by DEBT and are not just sitting there without an obligation to Repay the Debt the RDA has the City as the Co-signer. Dipping INTO these funds to fund the DIPS is not a wise answer to a budget short fall.
Below is how it is represented in the Local Press...
Grand Terrace to avoid layoffs, major program cuts despite expected budget shortfall
10:00 PM PDT on Wednesday, May 14, 2008
By JULIE FARREN
The Press-Enterprise
Grand Terrace won't have to lay off any employees or make major program cuts next year despite expectations for a $194,000 deficit in its 2008-09 budget.
City Manager Tom Schwab and Finance Director Larry Ronnow presented details of the coming fiscal year to the City Council during a budget workshop Tuesday.
The city's general fund is estimated at $5.5 million, with revenues at $5.3 million. The city will transfer funds out of its undesignated reserves to make up for the $194,693 deficit, said Schwab.
Saving money each year over the last two decades has put the city in good financial shape for balancing the budget, he said.
Ronnow, who is retiring in September after seven years as finance director, said varying estimates for property tax and sales tax income made this year's task challenging. "This has probably been the most difficult budget," said Ronnow.
There has been very little increase in sales tax and a 2 percent to 3 percent increase in property tax. Schwab said Grand Terrace is not heavily dependent on sales tax.
Ronnow said the city is being conservative by not overestimating the amount of taxes to be collected this coming year.
Most of the general fund revenue, 47 percent, will come from property and sales tax; fees and charges accounted for 24 percent, followed by licenses and permits at 14 percent.
The city's largest expenditure is for law enforcement, at $1.7 million. Administrative costs are $1.2 million.
Councilman Dan Buchanan teased Ronnow about the final budget he prepared for the city.
"I hate to end on a sour note, Larry, but this is a really boring budget -- nothing sexy, nothing sneaky," Buchanan said.
But he did have a serious question for Ronnow and Schwab about cutting costs if the city wanted to save the $194,000 taken from the undesignated reserve fund.
Schwab said the quickest cut would be the sheriff's deputy funded through a $100,000 cops grant. Other capital items such as a new generator could be eliminated, he said.
Councilman Jim Miller said that he doesn't foresee an increase in sales tax revenue for Grand Terrace, so the city can't count on that money.
He said he also is concerned about the property tax estimates from the county assessor's office and the final state budget.
Miller said he believes that the reserve fund should be used for special projects and not to cover deficits. "That worries me," he said. He advised that staff look into new sources of income to offset the deficit and asked if the council could receive mid-year forecasts rather than wait a year for the report.
Reach Julie Farren at 909-806-3066 or jfarren@PE.com
