Artesia News

State of the City Budget - Winter 2009

Reports from the Federal Reserve suggest that the recession has 'bottomed out'. However, times are still tough, especially when the City is seeking to keep its current level of service at the same level.

Artesia is facing an expected $848,000 deficit next fiscal year, and has already dipped into its reserves by $305,000.

Thanks to numerous cost-reductions by the City and its Departments, expenditures were under the adopted budget by 1.3 percent. All capital projects, real property, or equipment purchases took place from funds other than the General Fund (Restricted or Redevelopment funds).

This fiscal year, the City has removed numerous special events, or at least reduced their cost. All departments have slashed a minimum of two percent off previous operating levels, which were already very lean to begin with. Even city travel has been abolished or significantly reduced. City Manager Maria Dadian has obtained cooperation from the City's consultants and other contracts for fee reductions. These consultants are used with careful direction to ensure the City is receiving the most efficient, technical and professional staff support for tasks that can not be used with the City's current resources.

Two measures were also placed on the ballot, with the successful passing of one, which will increase a tax paid for by hotel guests.

The City is also negotiating with the employee union representatives. Although proposals and counter-proposals have been made, no agreement has been finalized. The passing of only one measure is expected to help speed the negotiations along.

While the City's reserve balance for 2010 is $2,526,000; the City can not continue using its reserves at the current rate, and unfortunately more cuts will have to be made and harsh decisions will be declared for next year's operations.