Ron's Log

« Getting Married In Southern California? | Main | Arthur C. Clarke »

November 7, 2013

The staff report for next Tuesday's City Council study session (November 12 at 4 PM) is interesting reading. Here are the figures as presented to the City Council in June when they approved the budget:

However, it is now known that the July 1 General Fund balance was actually $3,155,703. Therefore, the projected fund balance on June 30, 2014 is now only $895,546.

It gets worse. Now expected revenue in this fiscal year is expected to be only $13,902,464, not $16,295,409 — a reduction of $2,392,945.

We're not done. Estimated expenditures have been re-evaluated.

Expenditures, when evaluated, included adding back in many costs that were cut from the budget, even though the City has contractual obligations to pay some of these expenditures. The total increase added back to the Appropriations is $1,479,900. This number is net of cost savings that staff has already implemented. These changes resulted in a revised expected General Fund expenditure amount, including transfers out, of $20,135,466.

Add it all up and the General Fund balance on June 30, 2014, is estimated at a negative $3,077,299.

There has been one-time revenue this fiscal year of $682,589, part of the Developer Reimbursement Fee from the Health & Wellness Center. Excluding that one-time revenue, expenditures are budgeted to exceed revenue by $6.9 million.

General Fund cash on hand on September 30, 2013, $1,533,588. It is estimated that cash will run out by March 31, 2014. "The City will need to take steps to declare a Fiscal Emergency very soon." You may recall that at the joint meeting of the Finance Committee and City Council in October it was estimated that we wouldn't arrive at the point of fiscal emergency for another year or year and a half.

"Staff has issued a 'Notice of Public Hearing' for a Fiscal Emergency Public Hearing to be acted on at the Regular City Council Meeting on November 19, 2013 if the City Council should decide to do so."

Staff is presenting a list of 102 suggestions to cut expenses or increase revenue. Buried as suggestion #49 is this news: "Effective 11/6/13 the Economic Development Consultant [Michael Bracken] resigned." Some of the suggestions:

• First items on the list are to cut City Council expenses, including elimination of video services at the regular meetings.
• Sell the land where City Hall now sits and move all city offices into the still vacant county building on Palm Drive south of Vons. If the county would agree to $1/year rent, this could save the city $600,000.
• Stop all watering of city lawns, including parks. This would save almost $90,000 this fiscal year.
• Revise the public safety parcel tax, increasing the rate charged vacant land.
• Eliminating crossing guards would save $29,305 this fiscal year.
• A 10% salary reduction for all employees would save $388,553 in this fiscal year.
• Closing the Skyborne fire station would save only $12,500 this fiscal year.
• Elimination of funding for the Boys & Girls Club would save $125,000 this fiscal year.
• Decommissioning the police camera system would save $75,000.
• Elimination of one animal control officer would save $55,000 this fiscal year.
• Reducing code enforcement staff by two would save $110,000 this fiscal year.
• Eliminating graffiti abatement would save $30,000 this fiscal year.

Filed under Desert Hot Springs | permalink | November 7, 2013 at 05:36 PM

Comments

Ron reality has now hit you in the face. The only grandstanding at past city council meetings was done by Scott and Yvonne for discounting the concerns brought up by Mr. Sanchez and Mr. Betts. Your blog has been a voice of denial of this fiscal reality for years.

Posted by: Mike at Nov 8, 2013 5:56:25 PM

The city did ask for suggestions from the citizens. That was called the Finance Committee. Many of the suggestions you see on the list in the agenda packet came from the Finance Committee.

Posted by: Ron's Log at Nov 8, 2013 4:03:52 PM

I see that nothing is noted that a number of Police personal take there vehicles home with them to Banning Beaumont and as far as Yuciapa
This would be a money saving issue from the get go ,The city should ask for money saving ideas from citizens as well,

Posted by: nick at Nov 8, 2013 2:49:01 PM

Whether it's before or after Joe McKee gets sworn in, I'll be watching to see if we've got five city council members who all decide to deal with this issue by making the necessary decisions as quickly as possible. To do so would indicate a well-governed (although financially strapped) city - a place that might still attract investors.

Or will we get grandstanding and lengthy attacks on city staff, stretching out endless meetings that leave the city directionless?

Posted by: Ron's Log at Nov 8, 2013 10:11:15 AM

Good thing voters got Joe McKee in there to replace one of the incumbent fools who made this mess.

Posted by: O. at Nov 8, 2013 9:26:06 AM

Well... this is a tad discouraging....

Posted by: Michael R. Burke at Nov 8, 2013 8:52:04 AM

The comments to this entry are closed.