“I want my sister to have Ms. Erlandson,” said Aimee Hamel, whose little sister is a second grader at Juan Cabrillo. “She’s nice.” City non-profit organizations may see fewer dollars this year
By Daily Press staff
With City Hall facing the worst financial situation it’s experienced in decades, officials tonight will begin the arduous task of figuring out where to find the money to close the gap.
Officials released the latest deficit estimate last week, which suggests that City Hall is facing a $16 million shortfall this year, a $20.2 million deficit next year and $28.1 million in 2005-2006. Tonight is the first of three budget sessions that Santa Monica City Council members and City Hall staff will hold to pour over the city $354 million budget.
The meetings will begin at 6 p.m. tonight, Wednesday and Thursday at City Hall located at 1685 Main St.
The meetings are designed to allow the city manager and department heads to voice suggestions to the City Council before it makes a decision.
A proposed budget already has been given to City Council members by staffers in City Hall. Included in that budget are a series of proposed cuts and increased revenue sources.
The proposal includes 5 percent cuts in City The proposal includes 5 percent cuts in City Hall’s operating budgets, which include lay offs, city services and capital improvement projects throughout the city.
Department heads throughout City Hall, with the exception of police and fire, have been asked to lay-off 5 percent of their employees this year and another 5 percent next year.
The lay-offs will save the city between $4-$4.5 million this year, said City Manager Susan McCarthy.
Residents and visitors also can expect proposals for increases in business license and development fees, sales taxes, transit taxes, parking fines and meter rates.
Major revenue sources for City Hall’s budget includes user utility taxes, sales taxes, property taxes, hotel bed taxes, business license fees, parking fines, tickets and fees.
About 66 percent of the city’s expenditures are used for salaries and wages, including retirement, and medical and worker compensation benefits.
Voters could be asked in November 2004 to increase sales taxes and possibly business license fees, which haven’t been raised since the 1990s, McCarthy said.
She added that if at least two new revenue sources aren’t established, City Hall will face much greater departmental cuts in the future.
The city’s capital improvement budget for the next three years, which totals 39.2 million, could be drastically slashed to shore up City Hall’s deficit.
After public hearing on June 17, the council will adopt a budget for 2003- 2004, which begins on July 1. City Council members can expect an outpouring of community activists urging them to save their coveted projects and programs as they make tough choices in adopting the budget.
Originally published in the Santa Monica Daily Press print edition on May 27, 2003. Read the original PDF.