Marina, California has been hit hard by the economic crisis we are currently experiencing, with the city’s revenues falling by $1.6 million and spending decreasing by $3.3 million. Tough decisions are being made by the Green Party mayor Bruce Delgado and the city council.
The city’s revenue is estimated to be $25.7 million, while the spending totals $29.2 million. About 70 percent of the budget goes toward things like recreation, fire, and police services. Mayor Delgado has proposed both new sources of income and cutting costs of the city government. The city council, however, has rejected his proposals.
The local FOX news offers this:
“We need to approach this as a team,” said Delgado. “We need to look at all expenses, all revenues, and come up with a package of combinations.”
“There should be no sacred cows,” he added. “We should outline for the community what the tough choices are then let them tell us what they want us to do with their money.”
Among the options being discussed are using housing funds from the Preston Flats and Abrams neighborhoods, the city’s reserves, and the millions expected from land sales in the Former Fort Ord military base.
Delgado believes those revenue streams should be protected, particularly from the old army base.
“This is our golden goose that’s going to lay the golden egg. It’s my opinion we need to spend that money to improve our town and not cover our over-expensing.”
City councilmember David McCall says any money heading into the city should help all of the city.
“No money the city makes is supposed to stay in certain areas,” McCall said, pointing to increased revenue from development in the city’s Dunes project. McCall says a solution to be had is in expected hotel taxes from future development.
A good account of what’s going on can also be found at The Monterey County Herald:
Without recently built stores and hotels, the city would be in worse financial shape. Tax revenues, primarily sales and property taxes, for 2008-09 likely will fall about $818,000 below projections, Lai said.
To maintain current budget levels under these conditions, the city would eat up to $10 million in general-purpose reserve funds in less than three years, Lai said. Most of that money is generated by Abrams and Parker Flats rent revenue.
Delgado said more of that money should be put into improving the two neighborhoods. But McCall said those reserves are supposed “to get us through the tough times.”
Police, fire and recreation — the city’s core services — consume about 70 percent of the general fund, which covers most city operations.
In addition to a hiring freeze, Altfeld put a hold on many nonessential expenses, including travel, training and equipment purchases.
Marina is not alone among local governments facing tight budgets. Monterey County is looking at a $41.4 million budget shortfall next fiscal year, while Salinas is wrestling with a projected $12.6 million gap.
The budget debate could become more strained as the Marina council tackles next year’s budget during upcoming May and June hearings.
Delgado said any budget sacrifices — either cuts or revenue increases — must be spread evenly across the board.