LAKE COUNTY — Approximately $423,000 of Measure I money was at issue in the hour-long discussion before the Lakeport City Council passed its 2008-09 budget by a narrow 3-2 vote Tuesday. Councilmen Jim Irwin and Ron Bertsch were in dissent.
The Measure I money will give the city”s budget an approximately $160,000 positive balance at the end of the year, a measure City Manager Jerry Gillham said would mean no layoffs would be necessary. The positive balance contrasts a $172,000 deficit the city faced at the end of the 2007-08 fiscal year, according to Gillham.
“Measure I money is being used as a means of helping us get by in the meantime. Worst-case scenario, you”re going to have to use that Measure I money, but I”d rather keep cops and public works staff, I really would,” Gillham told the council.
Irwin objected, saying the money would have to be paid back eventually to be used for expansion of city services. According to City Finance Director Janet Tavernier, the money is for road maintenance and expansion of city facilities and services. Irwin said using the funds to cover an approximately $420,000 difference between the city”s expenses and its income was a downhill trend.
“For the short term and probably long-term financial stability of the city, spending half a million more per year than we”re taking in is no way to run a city. We can do that now because we have some of the general fund balance filled up. I want to at least level us out,” Irwin said.
Noting that Measure I money is to be used to expand services, Irwin said he would rather consider layoffs or a retirement incentive program than spend the voter-approved money to buoy the city”s general fund, used to pay for salaries, benefits and general operations.
“Measure I is going to get us by this year by us being fiscally responsible next year and paying attention to trends. If this money is spent again to bail the city out, maybe a closer examination of the Golden Handshake or a cutback of other aspects needs to be made,” Gillham said.
Gillham said with the city”s positive balance this year versus last year”s deficit, the city appears to be “turning a corner” and stabilizing financially.
Irwin disagreed, saying the city is taking in less money this year than it did last year “I don”t see this as a sustainable budget,” Irwin said.
The Westshore Pool and Westside Park will not face cuts this fiscal year, according to Gillham.
Mayor Buzz Bruns noted that mid-year revisions can be made, saying the council needed to stop “vacillating” and adopt the budget.
Contact Tiffany Revelle at trevelle@record-bee.com.
