Grand Terrace Budget

More financial obstacles await Grand Terrace
Stephen Wall, Staff Writer
Posted: 04/29/2010 04:58:09 PM PDT

GRAND TERRACE - The city managed to close a $423,000 budget gap this year, but more challenges lie ahead next year.
Officials anticipate an $800,000 shortfall in the General Fund for the 2010-2011 budget year starting July 1.
"I think next year is going to be another tough year, but I'm optimistic that this isn't going to last forever," Mayor Maryetta Ferre said.
Unspecified service reductions and the use of reserves will have to be considered to close the gap, City Manager Betsy Adams said in a report to the City Council last week.
Adams said the proposed operating budget for 2010-2011 will be presented to the council May 25.
"I'm concerned, but I do feel confident that the city will be able to address that budget challenge," Adams said.
There are a number of unknowns that could add to the projected $800,000 shortfall next year, she said.
Sales and property tax revenues are not expected to grow next year.
The city's contract with the San Bernardino County Sheriff's Department for law enforcement could go up nearly 8 percent.
Another concern is the state could take an unknown amount of the city's money to help balance its budget next year.
Adams said the city plans to achieve savings in next year's budget by paying parts of the salaries of some public works employees out of the gas tax fund instead of the General Fund.
Employees also agreed to reduce their work week from 40 to 36 hours, producing a budget savings of $155,000 next year. The new work schedule means the Civic Center will close 30 minutes earlier. Starting May 17, City Hall will be open from 7:30 a.m. to 5:30 p.m. Monday through Thursday.
Adams noted the reduced work hours equate to a 10 percent pay cut for 23 full-time employees.
"This is a group that stepped forward," Adams said in praise of city employees. "They thought it was a priority to save jobs."
stephen.wall@inlandnewspapers.com