Another round of cost cutting at City Hall – savings ranging from reductions in training to no new uniforms for the building department – delivered the $125,000 needed to balance the city budget. The $11.51 million plan was adopted by the city council at a special meeting Wednesday night.
“It’s a budget that has reduced expenses down to the bone,” said Stanley Cohen, a member of the new budget sub-committee. “There’s not much left to cut.”
No new or increased taxes were considered during the four-month process that ended with a 4-1 vote to approve. The city had been operating under an interim budget since the fiscal year began on June 1.
“We are protecting all core city services while providing them at the lowest possible cost,’ said City Manager Linda Kelly.
The council faced a deficit of nearly $800,000 when it last met, but agreed on measures to reduce the figure to $125,000. Those moves included dipping into one of the city’s reserve funds to cover the $133,000 confiscated by the state during its own budget crisis. Another major savings came by reducing
general fund transfers into a reserve account dedicated to long-term building maintenance, information systems and vehicle replacement.
Savings were also realized by maintaining staff vacancies; a reduction in the sheriff’s contract; and cuts to the cemetery fund and public art; and the Sonoma Valley Visitors Bureau, among others. Additionally, funding of three nonprofit organizations traditionally supported by the city – Vintage House, the Boys & Girls Club and the Ecology Center – was rolled back to last year’s level.
All these cuts were made to a budget already reduced by 10 percent compared to last year.
Still, the $125,000 figure remained. “I went back and asked each department to identify any additional savings to see if we could make this work without compromising our core services,” Kelly said. The council directed that management employees forgo a cost of living increase.
The resulting 12 cuts or changes – ranged from reducing audit costs to deferring repairs and maintenance – would appear to have no immediate impact on the public.
“This was no small feat,” said Council Member Laurie Gallian.
Mayor Ken Brown thanked Kelly, “for stepping up and making these cost savings. Thankfully we have the kind of staff that can do that tough work.”
Council Member August Sebastiani was appreciative as well. “It’s an awful lot of belt tightening. But I’m voting against (the budget) because of the non-profit funding.” His was the lone dissent in the final 4-1 vote.
The city has a $1.5 operational reserve, a $2.9 million special projects fund, and a $2.1 million fund for emergencies and disasters. Dipping into any of these accounts to pay off the rest of the deficit had been ruled out at the last council meeting.
With a budget cut down to the essentials, it will be the task of the new budget sub-committee to find new revenue sources. “This budget is a courageous start,” Cohen said. He will serve on the panel along with Gallian, Sanders, Kelly and Assistant City Manager Carol Giovanatto.
Without ways to replace declining revenue and balance future budgets, Kelly said city government could soon face fundamental changes. “This kind of effort will also allow sufficient time to prepare the community and local agencies for potential reductions in city services and potential structural changes to the city organization.”
