In budget, Santa Paula weighs tough decisions

Santa Paula faces a $557,000 deficit as its continues working to develop a 2017-18 spending plan. That's what came out of a Thursday night City Council budget workshop focused mostly on the general fund, which pays for core services including law enforcement, fire protection, roads and parks.

The budget is likely to be balanced and/or augmented with a combination of cuts and money from Measure T, the 1-cent sales tax voters approved in November. The tax is expected to generate $2.1 million in the first year, officials have said.

Consultant Mike Sedell, hired with Frank Catania to work on the budget and study a possible change to fire service, said it was the type of budget "no one wants to see."

The city’s fund balance is $600,000, enough to last about two weeks, and has dwindled from $2 million two years ago, Sedell said.

The budget, with deeps cuts, showed the reality in which the city was operating, he said. Sedell and Catania worked with the city to help prepare the 2015-16 budget.

“You’re at a crossroads. You need to make some very difficult decisions,” he said. 

The council disagreed on whether to factor into the equation revenue from the sales tax. Voters approved the tax for police, fire protection, roads and youth services, but as a general tax, approved by a simple majority, it can be spent on anything.

Council member Martin Hernandez said it was important that the city balance the budget without Measure T. Letting the sales tax oversight committee do its job by offering recommendations was important, he said.

Why have a committee when the council was going to propose the spending, he said.

“We’re kind of wagging the dog by the tail,” he said.

The deficit is partially driven by the loss of a $500,000 grant for fire protection and a $500,000 grant for police. Mayor Jenny Crosswhite said city officials knew they were set to lose that money, and it’s part of why they pushed the sales tax measure.

“So I’m not sure how we can even have this budget conversation without even thinking of things that could potentially be good candidates for Measure T,” she said.

Council member Ginger Gherardi said it was silly to not even consider making recommendations for how that new money would be spent.

The role of the oversight committee is to ensure that the city spends the money on what the public asked for, she said.

“Ultimately, the decision maker on this is the council,” she said.

Gherardi sharply criticized the budgeting process in the city. The council and members of the public received the draft budget materials minutes before Thursday’s meeting started.

“I want this in advance so that I can look at it and read it and come in here prepared to discuss it intelligently,” Gherardi said.

Finance officials needed to prepare monthly budget reports so the council could track spending versus revenues throughout the year, she said.

That way, if a problem were to come up, the council could immediately address it, she said.

As part of the workshop, each department cut its initial requests by 10 percent.

The council restored police cuts and ones that had been made to community services. The council also put back in a building inspector and assistant city manager position but made no decision on whether it would be one position split between duties or two.

Police Chief Steven McLean urged the council to keep the police budget intact. Although the department has 31 people, seven are out for various reasons. That leaves 16 patrol officers to police a city that has seen a 25 percent jump in serious felonies this year, he said.

Using the national average of 17 officers per 10,000 residents, Santa Paula would have 52, McLean said.

McLean said he is hopeful Measure T funds will be used to beef up police services and boost pay, which lags that of other departments in the area. Police officers get trained in the city, then take higher-paying positions elsewhere, he said.

The council requested that police return with cost estimates for a new building as well as a salary scale.

Resident Richard Rudman was part of Measure T's campaign committee. He said he would be disappointed if the council used the money to fill any gaps in funding. That money was supposed to enhance city services, he said.

Kristin Majda, who was recently named to the oversight committee, urged the council to wait to determine how the sales tax revenues would be spent so the group had a chance to provide a "well-thought-out recommendation."