community-based off site programs.
The agreement also allows both parties to meet in January 2007 and January 2009 to discuss changes to the base amount, said Deputy City Manager Mona Miyasato on Monday.
An Adjustment Conference Committee convened in January to get the ball rolling, with the group — composed of Mayor Richard Bloom, School Board President Kathy Wisnicki, Board Vice President Oscar de la Torre, City Manager P. Lamont Ewell and Superintendent Dianne Talarico — reaching an agreement at the end of March.
“The city manager and I and the team of people who were at the negotiating table met at a good point and I think we are both in support of the recommendation that is going to council tomorrow night,” Talarico said Monday.
Both the city and schools face daunting challenges in the future with regards to their respective budget situations. Facing declining enrollment, the school stands to lose more revenue as a result of its moratorium on non-resident students. The city, on the other hand, is looking at a potential loss of approximately $12 million in User Utility Taxes.
The agreement specifies that the city’s “Big 8” sources of revenue must be evaluated in adjusting the base contribution to the school district. The so-called “Big 8” includes revenue streams such as sales tax, property tax, transient occupancy tax and business license tax.
Two conditions must be met in adjusting the Master Facility Use base, according to the agreement, including total revenue growth over the past two fiscal years and revenue growth in each of the past two fiscal years. Due to anomalies that occurred in the “Big 8”when the agreement was drafted, only one of the two conditions was met — the total growth, according to a city staff report.
Despite the fact that only one condition was met, the committee is still recommending a $750,000 increase.
“The committee recognized the need by the school district, given its financial challenges, and the intent was always to look at the needs of both parties and...to look at the fiscal conditions of both groups and recognize their needs,” Miyasato said. “With that in mind, the committee proposed $750,000.”
Originally published in the Santa Monica Daily Press print edition on April 24, 2007. Read the original PDF.