BUDGET DEFICET... In Grand Terrace.... NO WAY

Grand Terrace grapples with budget deficit
Stephen Wall, Staff Writer
Posted: 05/12/2009 06:57:20 PM PDT

GRAND TERRACE - The vast majority of cities and states are feeling the effects of the recession and must deal with budget deficits.

Grand Terrace is no different.

"The overall budget situation is very tenuous," Finance Director Bernie Simon wrote in a budget message to the City Council. "Almost all sources of revenue are either decreasing or remaining the same, while costs have increased."

The council had a workshop Tuesday afternoon to talk about the 2009-2010 budget. Less than an hour before the meeting, acting City Manager Steve Berry said he found out the budget picture is bleaker than he thought.

The city was counting on getting a federal economic stimulus grant that would provide money to keep one sheriff's deputy.

But Berry said he was told the chances of getting the grant are slim because thousands of local agencies applied for it.

If the city doesn't get the grant and wants to keep the deputy, the city would have to take the $216,000 expense out of the General Fund, he said.

City staffers previously proposed spending cuts that resulted in a $53,000 surplus, leaving the city with the choice of making additional reductions or dipping into reserves to eliminate the $163,000 deficit. The city has $3.7 million in General Fund reserves.

The projected shortfall grew to $179,500 when the council expressed opposition to a staff recommendation to eliminate contracts for weekend graffiti removal, weed-abatement services and other programs.

The council unanimously voted against a recommendation to suspend the city-run Blue Waves summer swim program.

A majority of council members said they opposed eliminating the deputy.

"I'm adamant against cutting any safety officers," said Mayor Maryetta Ferre. "Safety should be our first priority."

Instead, Ferre suggested cutting out travel and conference expenses and eliminating the car allowance for city officials, saving about $45,000.

Staffers already had factored in cutting employee benefits and freezing pay raises for the budget year starting July 1.

Officials also proposed cuts in equipment and facility maintenance spending, consulting, training and other costs.

The council directed staffers to come back in two weeks with recommendations for additional cuts and cost savings to balance the budget.

Gramps Suggests:

Many of the Citizens of Grand Terrace have been forced to reduce their incomes or not have a job, or layed off entirely. We have 2 count them 2 City Managers who have boasted about the financial strength of the city's finances. Well, the truth is the "Reserves" is in fact unspent funds obtained by DEBT BONDS... if GT Paid Off its DEBT there would not be a "Reserve".

So, what is the answer. Well Termination of the 2 City Managers would result in a savings of nearly 500,000.00 in Wages and Perks. In addition it may be possible to terminate with cause or at end of contract and the result would be the City would not have to pay for post employment contracted costs.

Grand Terrace is a fraction of the size of Colton, and does not run its own Police Force and so forth. Perhaps the Cost of a City Manager should be a Fraction of the Cost that is spent by Colton... say 75,000.00 per year with housing offered by Tony Petta a little apartment on Preston Perhaps at a monthly rate of 300.00 per month for housing. If Tony's Place costs more than that perhaps it would be good if the next City Manager lived in the Mobile Home Park, and experienced the "Other Side of Grand Terrace's Economy". That would still be an income above the Average in Grand Terrace Household Income.

This would leave the funds available for the Sheriff and other Public Services that were offered up as ways to trim the budget.

Yes, end travel, cut the Council Compensation for Travel and Gas Reimbursements, Perhaps End the Private Party Grand Terrace Gala.