Jun
18
Los Al Council passes balanced budget for “dismal” 2009-2010
Filed Under City Budget, City Council, City Council Meetings
(6/19/09, Los Alamitos) (updated Friday afternoon) The Los Alamitos City Council met at 3 p.m. today, Friday June 19th for a Special Meetingand unanimously passed what is described as a balanced budget for fiscal year 2009-2010 which begins in just 13 days.
Wish I could say the same for our state of California legislators.
How the budget was balanced
The plan offsets declines in revenue with a one-time transfer of $89,000 from the “garage fund” to the general fund, an 11 day furlough for City Union employees, additional cuts for a total of $800,00o in savings, and increased income from Verizon Wireless finally collecting the city’s telephone tax.
The staff and Council deserve kudos for balancing the budget, especially in view of the fact that more cuts might still lie ahead. Unfortunately, it appears that our local schools and state parks may bear the brunt of the state’s poor budgeting, and I imagine the cities and counties will be bearing more of that burden as well before all the dust settles.
The meeting, which lasted less than an hour was broadcast live on Los Al TV3.
The City of Los Alamitos’ economic outlook for fiscal year 2009-10 is dismal, as the City is experiencing the effects of the national recession. Although numerous budgetary reductions are included in this fiscal year’s proposed budget, it does not completely compensate for the loss the City is experiencing in its core revenue sources. This decline in the City’s tax base (property taxes, sales taxes, and utility users’ taxes) has been included in the General Fund’s revenue projections for fiscal year 2009-10.
With the slowdown in the housing market and the predictions that the bottom has not yet been reached, property taxes are estimated to show no increase in the upcoming fiscal year. Additionally, the City’s sales tax revenues are expected to decrease 9.7% in fiscal year 2009-10.
–Asst. City Manager Nita McKay in Agenda Report on Budget
As a local Realtor, let me add that there appears to be evidence that Nita’s assessment of the housing downturn continuing is right on the money. My partner Blair just did an analysis that indicated a new wave of foreclosures will be hitting just as we move into the slower fall and winter selling seasons. Recent dramatic mortgage interest rate increases aren’t terribly encouraging either. We think the current upturn is already passing, and I’ve seen a dramatic decrease in activity in our local listings just over the last few weeks.
The full agenda, with links to key staff reports, follows:
SPECIAL CITY COUNCIL MEETING
FRIDAY, June 19, 2009 – 3:00 p.m.
AGENDA1. CALL TO ORDER
2. ROLL CALL – CITY COUNCIL
3. ORAL COMMUNICATIONS
4. CONSENT CALENDAR
A. Adoption of the City of Los Alamitos Fiscal Year 2009-10 Annual Appropriations Limit Attachment 1 Exhibit AArticle XIII B of the California Constitution specifies the amount of allowable revenue the City of Los Alamitos can appropriate from the proceeds of taxes.
Recommendation: Adopt Resolution No. 2009-06, entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALAMITOS, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2009-10.”
5. PUBLIC HEARING
A. Adoption of the City of Los Alamitos Fiscal Year 2009-10 Annual Operating and Capital Improvement Program (CIP) Budget (Finance)
Attachment 1 [1 page summary of resources and requirements]
2 [Summary of Adjustments to Budget, 3 pages]
3 [Budget Resolution, see #2 below]
Exhibit 3A [Proposed Budget Revenues, Appropriations, and Transfers, 1 page]
City Charter Sections 1201-1205 govern the development and adoption of the City’s Annual Budget. Section 1203 requires a public hearing for public input on the proposed budget. Thereafter, the City Council shall adopt the budget with revisions, if any; establish estimated revenues, expenditure appropriations, and transfers of funds of the City.
Recommendation:
1. Conduct a public hearing on the Proposed Annual Operating and Capital; and,
2. Adopt Resolution No. 2009-07 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALAMITOS, CALIFORNIA, ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2009‑10.”
6. ADJOURNMENT
The next meeting of the City Council is scheduled for July 6, 2009, at 7:00 p.m., in the City Council Chambers.
As always, your insights, thoughts, and comments are welcome. Please try to be diplomatic and constructive.
Comments
One Response to “Los Al Council passes balanced budget for “dismal” 2009-2010”
Leave a Reply
Dave as you are a Realtor, try not to tell what “the other shoe dropping” is or people will really get depressed.
Oh heck, anyone driving through Los Al on Katella already knows. Just look at all the “for lease” signs on the commercial property.
Expect commercial real estate to start hitting foreclosure in Nov or Dec of this year, Feb of next year at the latest.
[And to think we are building MORE office space in the city]