City Council to Consider $73M Budget

The City Council is expected to adopt the proposed 2011-12 fiscal year budget during its Tuesday meeting.

Ongoing measures to reduce spending and improve tax revenue resources resulted in a balanced $73.55 million spending package the council will consider, said City Manager Penny Riley. And though tax revenue remains low, the city remains without a structural deficit. 

According to Riley's report, “total General Fund sources are increased by close to $1.4 million, or 4 percent over the revenue estimate from the March mid-year update.” The city’s General Fund revenues decreased by $7 million since 2007 but tax revenues are showing signs of improving, wrote Riley.

“Property taxes remain strong and sales taxes are looking a little better, but we’re very, very conservative on those numbers,” Riley said. “We’re not seeing substantial increases, we’re just upping along the bottom of the recession—although the recession is supposed to technically be over.”

A reduction in services and staff helped balance the budget even more. And because measures have already been taken to reduce operating expenditures, the proposed budget does not include personnel or service cuts.

“This budget more or less continues the same levels that we had last fiscal year,” Riley said.

The city began evaluating vacant positions in 2007-08, at the start of the economic downturn. Since then, the city’s workforce has been cut by 17 percent through layoffs and not filling vacant positions.

Furthermore, all employees began contributing to their pension plans in 2009-10. Currently, employees contribute 4 percent, which has resulted in more than $600,000 in annual savings.

These numbers will increase even more, according to a report that was released on Friday, after city and two employee groups concluded labor negotiations and reached a two-year agreement.

According to the report, nonsafety employees will increase their contributions to 7 percent, beginning in July.

Beginning in January 2012, new nonsafety employees will be enrolled in a second tier, or 2 percent at 60 CalPERS plan.

Teamsters Local 911 and the city’s management/confidential employees represent 188 city employees. Negotiations with the Firefighters’ Association, which represents 58 workers, are still ongoing. 

“That’s not factored into the numbers that are in this budget, because that’s really late-breaking news,” Riley said.

Riley explained that the proposed budget “assumes the continuation of redevelopment activities, as it has in the past" despite Gov. Jerry Brown's proposal to eliminate redevelopment agencies.

“Should the budget trailer bills that are bumping around the legislature that have not yet gone to the governor be passed, we would have to come back to the City Council with recommendations,” Riley said.

Riley said she expects the spending plan to be approved. If approved, the plan will go into effect July 1. 

Other items on the City Council agenda include:

• There will be three other public hearings during the City Council meeting. The first hearing involves a resolution to adopt the 2010 weed and nuisance abatement charges to be collected on the county tax assessor’s roll for FY 2011-12.
• Another hearing involves multiple ordinances pertaining to temporary use permits, comprehensive sign permits, general plan amendments and specific plan regulations. 
• The final hearing involves the sale of property. The property is located at 13917 Courier Way and 13956 Poway Road. It includes an access strip adjacent to the south.
• City staff will also present two reports during the meeting. During the first report, city staff will recommend the City Council adopt resolutions to classify various components of fund balance. The Governmental Accounting Standards Board issued a standard that altered the categories and terminology in February 2009. The resolutions would also designate the City Manager as the city official authorized to define and determine certain categories. 
• During the second report, city staff will request more funding for the Oak Knoll Road Improvements Project. Staff recommends the City Council appropriate an additional $680,000 for the project.
• The meeting will open with the introduction of the 2011 Miss Poway and Miss Teen Poway courts.

The meeting begins at 7 p.m. inside the Council Chambers. See the full agenda here.