Thursday, November 20, 2008

City Budget in the New Economy

NCT: ENCINITAS: City considers increasing its reserves

Right now, Encinitas is one of the lucky cities, staff members said. Its property tax revenue ---- the single largest source of income for the city ---- is projected to grow by 5 percent this fiscal year.

City sales tax revenue, however, isn't looking good.

Sales tax revenue generated between April and June was down 5 percent compared to figure a year ago, the report notes. City staff members said that's simply the start of the bad sales tax news.


The city is forecasted to collect $54.5 million and spend $48 million.

Burning Questions:


Just how bad will sales tax collections be with several major retailers in New Encinitas closing down?

How much will the Leucadia Streetscape cost?

Is the Leucadia Streetscape project in danger when the city moves forward with it's plan to build a $75 million park on the Hall property?

How many small coastal businesses will close down this winter due to this harsh new economy and lack of infrastructure and support?

14 comments:

  1. the real burning questionNovember 20, 2008 9:02 AM

    Why did council give all of its employees a 14% pay raise and huge pension increases for all City Employees?

    Of course there will be no money for projects like the Hall property when you give away all of our tax money like monopoly money.

    ReplyDelete
  2. Leucadia Business ownerNovember 20, 2008 9:25 AM

    To answer the last question, about 8000% more businesses will close, than City Employees will be laid off. I am about to announce my store closer and I know about 5 more right behind me. How many City Employees are being laid off this year?

    Why did council agree to those outrageous pension and pay increases earlier this year?

    ReplyDelete
  3. look at the comments following this story. One "proud City employee wrote - I am proud of Mayor Stocks & the entire City Council for giving me a 14% raise over the next 3 years & a huge pension increase last year. Thanks for the cushion Guys. I am sitting pretty through this depression."

    ReplyDelete
  4. Shop Leucadia.
    Help get us through this.

    ReplyDelete
  5. "City Council members unanimously agreed Wednesday increase the amount in a special budget stabilization fund to $2.67 million."

    This is the key sentence in the article. I thought we had $8 million in the city reserve fund. That's what Jerome Stocks and James Bond claimed during the election campaign. Do we need to augment that fund? And if so, why?

    "Sales tax revenue generated between April and June was down 5 percent compared to figure a year ago, the report notes."

    This period was barely the beginning of the big drop in consumer spending. The succeeding months will be much worse.

    "Right now, Encinitas is one of the lucky cities, staff members said. Its property tax revenue ---- the single largest source of income for the city ---- is projected to grow by 5 percent this fiscal year."

    Can this really be a valid projection? Property tax revenue was flat last year. In fact, it was down slightly, around $70,000. It seems unrealistic to expect a 5% increase. Where is this increase coming from? Has there been that much new construction?

    All of this doesn't compute. We will find out the truth in 2009, when the budget workshops begin. By then the economy will be much worse. The present economic trends are scary.

    ReplyDelete
  6. this is funny. They gave him a raise.November 20, 2008 7:24 PM

    This is funny, they gave him a raise just like our City Council gave staff and themselves a raise for losing our money. Man- This Government leaders are losers.

    "To put it bluntly, the strategic policy overall is a sophisticated policy that we don't need right now," Deutsch told the board.

    Also at the meeting, the board voted to increase Deutsch's salary by 4.3 percent to $209,000, based on the fund's strong performance over the last fiscal year. Loretta Morris, a trustee on the board, was the only member of eight present to vote against the raise.

    Over the last fiscal year, the pension fund outperformed the overall market, posting an investment gain of 1.5 percent while stock indexes fell 15 percent or more. But from July through September, the pension fund did worse than several Wall Street benchmarks, losing a huge chunk of its value, $1.1 billion.

    That portfolio valuation did not account for October, the month that saw the biggest decline in stocks.

    https://www.blogger.com/comment.g?blogID=12885680&postID=5187745747001111102

    OK. You the taxpayer will pick up everything, this loser lost.

    ReplyDelete
  7. At least leaders have brains and look out for the citizensNovember 20, 2008 7:40 PM

    CCDC to put workers' raises, bonuses on hold


    UNION-TRIBUNE

    7:19 a.m. November 20, 2008

    SAN DIEGO: The downtown redevelopment authority will freeze bonuses and raises for employees through June.
    Centre City Development Corp. Chairman Fred Maas said this step is prudent, given the national economic turmoil. Several residents suggested cuts to CCDC at city budget hearings yesterday.

    ReplyDelete
  8. Property tax revenue will fall even more as residents are submitting requests to the County Tax Assessor for re-evaluation given the downturn in property values. If your property has lost the average 35% value -- you should apply to the County to have your taxes lowered. The City will be laying off employees next year -- and the first to go will not be the management level fat cats.

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  9. The city is in la la land -- property tax revenues are falling and sales tax is falling -- we are in an unprecedented financial hurricane and the city thinks it should save a little more money. Next year expect cuts in services, including lifeguards, park maintenance, library hours, etc. The public will suffer before the city starts laying off people, and it will never, ever vote a pay cut.

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  10. Dump trucks will constantly be rolling down Leucadia 101 for the next 4-6 weeks. Dirt and sand will be kicked up by these trucks. If you have complaints, contact the city and also the council.

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  11. They should renegotiate the contracts role back the pay raises and pensions. Otherwise, start the firing and establish a new more reasonable compensation policy. Low performing City Employees should not be making premium pay and cushy pensions that give 90% pay of your highest paying year for life.

    ReplyDelete
  12. Call for the resignation of all the directors except for public works. That will free up a million dollars. Put engineering under public works.

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  13. Yes, I don't think engineering is doing enough. Too much is "farmed out" to consultants.

    What was not discussed was that CALPERS, California's Public Employee Retirement System, lost over $24 BILLION in investments. Cities and counties, and the State will ALL have to kick in more to cover pension benefits from General Funds.

    Patrick Murphy used to be Director of Community Development. Bill Weedman was director of Planning and Building. Now Bill Weedman retired and Patrick Murphy is director of Planning and Building. I feel Planning and Building and Engineering could be under Public Works. I don't feel Patrick Murphy has been an effective leader, there. He quit once, then came back. He should not have been rehired OVER Bill Weedman.

    Patrick Murphy is a Jehovas Witness, which is fine. However, he should NOT become involved in politics, which he does. He doesn't seem to be able to understand City Code and takes too many directions from the City Attorney, who just goes along with the three man majority, as does our bought and paid for City Manager. Our City Attorney misrepresents the content and intent of our City Code to the Courts. The judges give city attorneys huge leeway in "discretion" as they do the District Attorney. Public officials and officers have "discretion" and privilege. The ordinary citizen does not and is often treated rudely.

    I don't know what we can do, now. In two more years we can HOPE that Dalager might retire. Eight years should be enough. If ten percent of the voters sign a petition, we could get term limits on the ballot. Give someone with a fresh perspective a chance.

    Also, we could vote to have an elected mayor and an elected city attorney who had to be elected by a MAJORITY, that is, over 50% of those voting.

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  14. Ah Lynn- Always the same. And to you Bondii, and save the canopy, and all your other Anons....

    ReplyDelete

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