Council Adopts a Surplus Budget for 2011-12
DUARTE, CA, June 30, 2011 – Determined to budget within “the new normal” of economic reality, the City of Duarte has adopted an approximate $11.4 million dollar 2011-12 general fund budget reflecting $700,000 in cuts including over $300,000 in personnel and approximately $400,000 in program. Should union negotiations prove successful, Duarte could be headed for its first budget surplus of approximately $135,000 in five years.
Even so, if the State abolishes Redevelopment, the City would be back to the drawing board for additional budget cuts.
“This budget represents a snapshot in time for the City since we still don’t know where the State budget is going. It’s made it hard to pinpoint a set number that will allow us to maintain the quality services we have endeavored to provide the community over the years,” said City Manager Darrell George.
As part of the regular June 27th Council meeting, the annual budget presentation emphasized cutting deficit spending, reducing personnel expenses and eliminating underutilized programs. Reductions included the elimination of one special assignment deputy at a savings of $220,000; charging 50% of the school resource officer to Duarte Unified School District for savings of $52,000; making youth, teen, and senior programs and excursions self sustaining which will save $29,000; relocating Public Safety offices from rented space in the Target shopping center to a City-owned building for a long term savings of $90,000 annually; and reducing recreation supervision at Encanto Park during the school year. The newly proposed cuts are on top of already more than $1 million in cuts Duarte made in the previous two years, including allowing eight full time staff positions to remain vacant at an annual savings of $830,000 and the reduction of several contracts and services.
With an estimated overall revenue increase of 3% or $358,000, City General fund revenues for 2011-2012 are projected at $11.55 million. Duarte expects a 4.6% or $192,000 increase in sales tax revenue due to modest improvements in auto sales and general consumer goods. Another slight increase in the revenue forecast included $31,000 in additional service fees due to the recently completed citywide service fee study. Signs of the still struggling state and national economy affecting Duarte include an anticipated $70,000 reduction in permit fees and plan check fees and a $25,000 decrease in vehicle license fees. Under the City’s current scenario, expenditures would total $11,420,900, leaving the City with a $134,400 surplus and $11,364,000 in reserves. The reserve level includes $7.5 million that was transferred mid-year from the Redevelopment Agency to the General Fund to repay a prior City loan to RDA and is pending the State’s decision on whether Redevelopment will be abolished or not.
“The past three years have been extremely difficult for cities in California, and across the country for that matter,” noted George. Adding, “we in Duarte have managed to weather the storm for the most part and the 2011-12 budget hopefully turns the corner to a brighter economic future.”
