Duarte City Council Ponders Cuts and Reductions To Counter Projected $1.7 Million Budget Deficit

Duarte City Council and staff are preparing to make some of the toughest budget decisions in more than a decade when they convene for their budget workshop on May 4 and work to whittle down a projected $1.7 million budget deficit for fiscal year 2009-2010.

While the May 7 opening of a Best Buy offers a bright spot expected to provide a much needed boost to the city tax coffers, sales tax revenues particularly from auto sales, historically the City’s largest sales tax contributor, continue to dwindle.

“Over the last two years, the city has lost over $1 million in tax revenues, from a decline in sales taxes and property taxes,” said Assistant City Manager Kristen Petersen.

Also contributing to the looming budget deficit are projected declines in building permit fees, inspection fees, delays in State grant funds, contract increases, and ever escalating utility costs.

“While the City has done well at setting aside reserves, each year that we have to operate on a deficit takes its toll on the fund balance and it is still unclear how long this recession will last. Right now, we are looking at everything we can do to conserve and enhance revenues. One thing we do know for sure is that there will be cuts and reductions in the 2009-2010 fiscal year budget. Our goal is to continue to provide the best service while being fiscally responsible,” said Petersen.

How best to counter the expected budget deficit was the major topic of discussion when council members and staff held a recent Strategic Planning Retreat at nearby Packard Hall at Westminster Gardens Retirement Community.

Three main goals for the budget process were identified by the group; explore creative staffing options, explore funding opportunities and reinvent programs instead of eliminating. These three goals will help to guide staff as they work through the process of prioritizing programs, recommending cuts, and exploring creative staffing options that will help narrow the budget gap. Staff has been directed by the City Manager, Darrell George to recommend at least $1 million dollars worth of cuts and revenue enhancements for City Council consideration at the May 4 budget workshop.

“Whenever possible we’re looking at re-inventing programs through grant funding and partnerships, rather than eliminating them. We’re also working to better align staff to assess current trends and opportunities such as going after ‘green’ projects money. Nonetheless we are not naïve enough to believe that the solution will not have to include cuts. We are in the midst of a severe economic recession and drastic times will require a combination of creative thinking and significant fiscal measures.” said Petersen.

The City Council budget workshop will be held on Monday, May 4 at 4 p.m. at the Duarte Community Center, 1600 Huntington Dr. The workshop is open to the public.

For more information, call Duarte City Hall (626) 357-7931.