At a special budget workshop in Chula Vista April 14, city staff presented a balanced budget to council for the 2011/2012 fiscal year.
The nearly $120 million budget reflects more than a 10 percent reduction from last year’s $133 million operating budget.
City Manager Jim Sandoval said Chula Vista has weathered the recession.
“I think we’re past it now and a lot of people deserve credit for grabbing the bull by the horns,” he said.
City officials said Chula Vista was one of the first cities to identify the fiscal crisis because staff had a plan.
City staff’s response to the recession was to stabilize and maintain operating reserves, maintain an A- bond rating, complete comprehensive pension reform for current and future employees and maintain the majority of core services.
Despite significant concessions from all five labor unions, the city suffered from a $18.5 million deficit, $6 million due to the failure of Prop. H, the city’s telecommunications users tax, in November.
Reductions included severe cuts to departments such as libraries, parks and recreation and public safety resulting in a savings of $1.2 million through June 2012.
In addition, some 88 positions were eliminated since January including 378 layoffs in the last four years, according to human resources director Kelley Bacon.
In January 2009, the city adopted the fiscal health plan to address the financial emergency. The plan was four-pronged, including expenditure cuts, ways to increase and protect revenues, economic development and job creation and significant budget reforms.
Staff said goals for the next fiscal year include appropriately funding municipal services and making significant progress on key programs.
In the updated five-year financial forecast, Finance Director Maria Kachadoorian said modest economic recovery is expected and projected a two percent growth in property tax revenue and sales tax within the next fiscal year.
“One thing that I’ve never seen before is that sales tax has surpassed property,” Kachadoorian said. Although she said the trend will likely change as the market turns around.
Included in the city’s general plan is a broad range of employment opportunities to support an excellent standard of living, entrepreneurial spirit and enough revenue to maintain services to the public.
Sandoval said that a city’s fiscal health has cash flow for daily needs, the ability to pay debt, having money for emergencies, good bond ratings, funding pensions at a good rate so its not a liability and attracting and retaining highly qualified staff.
Currently, the city’s discretionary money is mostly spent on public safety at 68 percent or $55.4 million. Of that money, $34.6 goes to police.
Chula Vista Police Chief David Bejarano said the police department is becoming more efficient and effective.
The department created a new geographic model that includes reducing training by 5,200 hours each year and still allows for five extra officers in the field.
According to Bejarano, 11 officers are scheduled retire by May 9, which would yield the city about $1.3 million.
