BELT-TIGHTENING measures are coming a bit earlier than expected to the City of Ventura.
The City Council recently made a series of mid-year cuts totaling $3 million. But already-planned measures to trim city services for the 2008-09 fiscal year budget in July were moved up for consideration earlier amid unsettling financial news.
"Sales tax continues to sink as consumers pull back from their equity-fueled overextension," City Manager Rick Cole said. "But the big dip is building permits which have nosedived -- and we expect planning permits to follow.
"What's even more significant is the element of risk," Cole said. "Until recently, we had a reasonable degree of confidence that we were looking at worst case. Now the bottom has fallen out of the worst case scenario. With the sudden meltdown of Northern Rock in England and Bear Stearns here, the potential for a deep plunge, while still remote, is no longer implausible. So we are preparing not just for what we currently project, but what very well could happen -- even after the budget is adopted."
This city is also certain to feel the repercussions from the housing bust as default and foreclosure rates climb. Experts are predicting a surge in applications for assessment reductions to the County Tax Assessor's office, with an accompanying decline in property tax collections.
THE COUNCIL WILL CONVENE April 1 for a special budget session to look at the $4 million in across-the-board cost-cutting measures already proposed and further reductions.
New to the table are an immediate hiring freeze, possible layoffs or deferral of raises, the closing of City Hall every other Friday to save energy costs, the furlough of non-safety and maintenance operations staff and closure of city facilities Dec. 25-Jan. 5, and the further cancellation and postponement of capital projects.
Both Cole and Mayor Christy Weir have mentioned upcoming efforts to educate the public on the impending cuts and the city budgeting process in general. City staff recently invited members of the Chamber of Commerce to work with them on the upcoming fiscal year budget, a process that was well-received by the Chamber, Weir said.
I was happy to hear about the Chamber's inclusion in the budgeting process and I really wish more citizens would take the time to understand how their city government works. As Thomas Jefferson often wrote, democracy cannot function without an informed populace. In uncertain economic times, information is critical.
Crime is up in Ventura and it looks like they're trimming the fat at City Hall. All you yelling about the 911 fee are getting your wishes!
Ventura, you should have passed Measure P6 while you had the chance.
I see the City of Ventura is finally starting to get real. When the private sector starts feeling the pinch, the first thing they do is tighten their belts and making the cuts necessary to balance their budgets. They don't have the option of raising taxes or imposing ridiculous fees to cover their cost of doing business. I'm glad to see Ventura finally responding responsibly by proposing some real budget cuts instead of sticking their hands into my pocket once again.
The private sector has the option of raising prices for goods and services and does so all the time. Gas is $4 gallon and oil companies are making obscene profits. The difference is they don't have to answer to anyone but their stockholders who like those tidy dividend checks.
Skip, you are wrong. The private sector does not raise prices when the economy is bad. They usually lower prices to bolster business. Stockholders are interested in making money and raising prices in a slow economy is certainly not the way to do that.
Oil prices are an exception because they are subject to the whims of OPEC and often what is going on politically in the Arab world.
Hey, tell that to my cable company. They just raised my rates. What makes you think that government can't raise fees when revenues are lower? State college fees go up and up. Have you forgotten that the city is also an employer of regular and contract workers? Lost jobs mean less spending in Ventura, mortgages unpaid and going into default.
My point, which has obviously escaped you several times, is that government tends to do the opposite of what the private sector does in tough times, which is raise prices rather than lower them. Government has a monopoly on services, such as 911, utilities, trash service, parks, recreation, and a host of other things that the private sector doesn't provide. Therefore, people are stuck when government raises its fees or rates, whereas, in the private sector, the power of competition is ever-present.
In a bad economy with no new revenue coming in, government doesn't have any choice. There are certain levels of service that must be provided for public health, safety and the common good. It's up to us to decide what kind of community we want. Many of us (62%) were willing to pay more for public safety with P6. I haven't seen what the city is cutting in its budget. The Pierpont homeowners want the sand cleared there, the west side residents are mad because the city has backed out of building the new pool, others are mad because their streets aren't being paved, their aren't enough cops downtown, their building permits aren't being approved fast enough, the promenade is in bad shape and etc. etc. etc. You can't have it all and low taxes and low fees.
My response to that is the City Council needs to have the political will to stand up to the special interests and explain to them that these are tough times and the City cannot afford to pay for these things they want at this time. They also need to admit that they made some mistakes, such as acing Wal-Mart out on Victoria, and not considering some other retail opportunities that could have helped the revenue picture significantly. But we all know that pigs will fly before this happens.
I recently asked for some projections about sales and property tax revenues from the city. It's fairly depressing. As of last week, of the 450 or so homes on the multi-list for sale in Ventura, over half are owned by banks. As I wrote above, experts are predicting assessment reductions.
Sales taxes are down 10 percent.
From what I have learned, the anti-Wal-Mart group now collecting signatures to keep this store out is highly organized, well-funded and motivated. I have always believed the Wal-Mart decision would be taken out of the city's hands altogether and would go to a vote of the people.
I have always been an advocate for quality retail projects, though. Many people here fight those, too. (Look at the comments in my East of Eatin' and VCORD entries below).
The latest figures show crime is up in Ventura. We need those new officers that the 911 fee would bring in. I don't know how we will get them otherwise.
Yeah, Marie, I will agree with you on people fighting good retail projects. But, in some people's minds it's "any development is bad development." In my view, that is extremely selfish thinking. It's like, hey, I got my little piece of heaven and no one's going to change it, no matter how good it may be for the overall community.
Heaven for me would be if I didn't have to drive to Thousand Oaks to shop! Our mall stinks!