Numbers flew about like confetti when city department heads
explained and justified their individual budgets to the council at
an all-day workshop a week ago.
Numbers flew about like confetti when city department heads explained and justified their individual budgets to the council at an all-day workshop a week ago. On Wednesday the public will see for themselves what the $83,837,945 spending plan looks like and how the city will cut another $100,000 from the 2004-05 budget, closing the gap between income and out-go.
A previous $800,000 shortfall in the projected 2004-05 budget was covered by cuts and using some reserve funds.
The City Council will hear the report of the Finance and Audit Committee on where to find additional revenue, called “revenue enhancement” – tax or fee increases.
Under discussion for possible increases are a half-cent increase in sales tax (a gain of $2.2 million annually but would need two-thirds voter approval), a general tax ($1.1 million annually needing majority approval), a 911 fee ($800,000 annually and no voter approval), a utility tax (up to $650,000 per 1 percent tax increase) and a lighting and landscape assessment ($800,000 annually needing approval by a majority of property owners).
The extra $100,000 in cuts became necessary when details of the revenue shift became clear. The state takes tax money the city would normally expect to keep, to pay for state programs and balance the state budget.
Gov. Schwarzenegger promised local governments that, if they would agree to two more years of tax shifting to the state, the practice would stop after that. Legislators and the governor also agree that the basic structure of government financing must be rewritten; current thought tends toward allowing cities and counties to keep far more of their property taxes and rely less on sales taxes.
After Wednesday’s public hearing and council-suggested alterations, the council is scheduled to adopt the budget June 16, beating the deadline of July 1 by two weeks.
At $18,865,308, the new general fund is $2.5 million more than that of the current year’s budget. The increase exists despite cuts, mostly because of additional expenses from operating the community and cultural center and the new aquatic center, scheduled to open June 12.
Most departments’ budgets are lower than projected for the current year and included some staff reductions. Several departments reduced their load on the almost $19 million General Fund by shifting positions into other departments or other funds.
The City Attorney’s office will save $50,000 by transferring $25,000 in costs to the Redevelopment Agency fund and eliminating contract services. The City Manager’s department ($165,000 in cuts) has reassigned an assistant city manager to Public Works along with all environmental programs, which the manager oversees. The recycling calendar, composed of winning art work from a contest for school children, will be discontinued unless private sponsors can be found.
City Visions, the city’s monthly newsletter mailed and/or e-mailed to all residents, will be reduced from 12 issues a year to six and may be joined with the recreation schedule, also sent to all residents.
Recreation Department will save $141,000 by eliminating after school programs at the low-income Village Avante and The Willows. Front office hours will be reduced at the community center and employees will be expected to do more with less. The department will lose an administration analyst by 25 percent and event coordinator hours will be reduced from 60 hours to 40 hours per week.
Some analyst hours will be reassigned to community development (planning) and the costs of citywide events (the Halloween Party and the Taste of Morgan Hill) will go to the RDA.
The Finance Department will lose one-fourth of an accounting assistant II position and reassign another 25 percent to the recreation department
Human Resources will save $50,000 by losing one position, reassigning half of another and eliminating all employee events except those recognizing performance.
A vacant 34th police officer position, a vacant half-time records position and a filled half-time police cadet position will save the police department $173,000.
Two groundskeepers, now filled with temporary employees, will go, saving park maintenance $125,000. City parks will still be maintained, the council learned at the first budget workshop, but grass will be allowed to grow a bit longer, watered slightly less and some park edges will be relandscaped with plants requiring very low water rates and bark.
Total citywide department cuts equal $866,000.
Councilwoman Hedy Chang, a member of the Finance and Audit Committee, said previously that she would not consider “revenue enhancement” without “significant cuts.”
“It would be a very last resort,” Chang said earlier.
At Wednesday’s FAC meeting she said “significant cuts have been made.”
She said she was now willing to consider tax or fee increases if they would benefit the most people and if the voters approved. Most taxes, but not all, require as much as a two-thirds majority; most fees can be raised by council direction.
• Council will also hold a public hearing on approving the 2003 report on public health goals for water quality. This includes other chemicals found in Morgan Hill municipal well water besides perchlorate.
The complete Council agenda is available at the City Clerk’s desk in City Hall and on line. City Council and/or the Redevelopment Agency meets at 7 p.m. most Wednesdays in City Hall Chambers, 17555 Peak Ave. Details: www.morganhill.ca.gov or 779-7271. Council meetings are broadcast live on cable access channel 17.
