Annual Report 2004
Economic
Fee Structure Analysis
Makes Sense
Many City fees have been
reviewed and adjusted during the past two years
as we have looked for ways to balance the budget
and minimize service cutbacks.
As a result of ongoing budget challenges (see adjacent story), the City
Council has asked for another review of fees and
subsidy levels. This process will take place
over the upcoming months.
Why do we analyze the fees we charge for services?
In general, City services used by all citizens such as police, fire and
parks are funded primarily by taxes. Some services benefit individual
users, which include recreation programs or building plan checks and
permits. These are paid for through user fees.
In the latter cases, it is important that we know the cost of each service
so we can charge an appropriate fee and determine a subsidy level, if any.
Why and how do we subsidize City services?
Sometimes we provide services at a reduced rate because the City Council
decides its in the best interest of our
community. Some services which are provided at reduced rates include
senior and youth programs as well as appeals to the Council regarding
planning decisions.
To participate in this review process,
stay tuned to the local media and City TV cable Ch. 25 and the Web site (www.monterey.org)
for meeting schedules. Or take the time to fill out the comment card
enclosed in this edition of City Focus and let
us know about your recommendations on which fees should be increased.
Sustaining a healthy economy is vital
to the quality of life our residents have come to depend on. And
that means maintaining a balance between
community and visitor needs. The City is always looking for new and
creative ways to support local businesses and commercial property owners
while providing services and programs more cost-effectively.
Rising Expenses Extend
Budget Challenges
Projected expenses and revenues at the City continue to be out of
alignment. And we need community input as we plan for the new budget.
A variety of factors contribute to the $2-million budget gap projected
for next fiscal year. This is on top of the $5-million imbalance that we worked to fill over the past two
years.
The City has already cut back on staff and services and used some reserves
for economic uncertainty to help balance the budget. As a result,
more than 50 staff positions were
eliminated or reduced, both full and regular part time. Because there are
fewer staff, some City offices now have automated answering systems and fewer office hours. Return phone calls can be delayed and
projects are taking longer to complete.
We are dealing with reductions in Library and volunteer office hours; the
closure of Archer Park Center; elimination of Saturday hours at all
community centers; the cancellation of some City holiday programs;
reduction in the Library’s budget for materials, including books;
scaled-back maintenance of City streets,
buildings and parks; and decreased support for various grant and community
service programs.
Looking toward the future
As we consider the challenges for fiscal year 2005-06, we are evaluating
the best alternatives for closing the additional budget gap, which stems
largely from increased costs associated with personnel benefits such as
PERS retirement rates, workers compensation and health care. Added service
cuts would go even deeper and could affect more staff positions, including
police, fire and public works.
As a first planning step, the City Council in August decided to place
a 0.25% (one quarter of 1%) sales tax increase on the Nov. 2 election
ballot. This tax could generate some $1.5 to $1.8 million annually for
five years.
This fall, voters will decide whether some new revenues will be used to
offset the additional expenses or if we should only consider cutbacks. To prepare
for either course, we need to re-examine the City organization and plan
for scaling back.
Take the time to tell us about the programs and services that you think
should be considered for elimination or reduction. Fill out the
comment card and
send it in today.
For additional questions about the
budget, visit
www.monterey.org/budget or call 646.3940.
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