BELLFLOWER COUNCIL CONSIDERS BIG CUTS IN WAKE OF UTILITY TAX FAILURE
By Arnold Adler
A smorgasbord of cuts, ranging from employee layoffs to closing the municipal swimming pool and selling Caruthers Park for a residential housing project, is under study by the City Council. Possible decisions on some are expected at the next regular meeting Feb. 14.
As directed by council, City Manager Mike Egan laid out a list of actions with pros and cons—and an estimated savings of $2.3 million—at the Jan. 24 meeting.
At issue is an expected $1 million deficit in the 2011-12 budget as of July 1, even though there currently is a $12 million surplus in the city’s general fund.
About $8 million is needed for cash flow to pay bills between revenue collections while the remaining $4 million should be kept for emergencies instead of operations, Egan said. Egan said sales tax revenue is expected to fall next year because of the bad economy and utility tax income is projected at 2 percent less.
An election Nov. 2 to increase the 5 percent utility tax by two percent for five years lost by 13 votes.
“We can’t keep kicking the can down the road,” said Mayor Ray Dunton, as the council called for immediate action. But he also warned that the city should “not go so far down that it can’t come back when the economy improves. We need to keep a team in place for when things get better.”
The city will start work on the 2011-12 spending plan this month.
