Friday, Jun. 06, 2008

Chamber of Commerce gets funding help

Redevelopment Agency to give money to group

The Redevelopment Agency is going to step in to help the Los Baños Chamber of Commerce fill a funding gap that will likely be left by a cut to its annual contribution in the city's 2008-2009 budget.

Keith Groninga,the chamber's executive director, asked the City Council on Monday not to cut his organization's financial contribution.

He said the chamber has just begun to make progress in efforts to involve the Spanish-speaking community. And he said financial support from the chamber's membership is dwindling because of the state of the economy.

"My intention was to bring in a person who was bilingual. I did so and I'm pleased to say at this point and time we estimate that between 10 and 15 percent of our business is being conducted in Spanish," Groninga said. "Therefore looking at a budget cut now, in addition to the hammering we've taken with our membership, we have a tough economic situation."

Between loss of property tax revenues because of foreclosures and anticipated state cuts Los Baños is planning to tighten its financial belt in the next fiscal year. That is translating into a $4,350 cut to the chamber's annual contribution in the city's 2008-2009 budget proposal. Instead of the $36,000 it received in 2007-2008, the chamber would only receive the amount the city has given it for the past decade, $31,650 per year.

In a telephone interview Tuesday Mayor Tommy Jones indicated there was not much room to add more expenses into the proposed budget.

"The problem is when you're dealing with a budget like this you're going to have a lot of hands and a few dollars," Jones said.

The city is estimating that it will take in $59.5 million in revenue and have $74.8 million in expenditures in 2008-2009.

As a solution to the chamber's money woes, Jones proposed asking members to contribute money in addition to their dues.

Jones' plan, however, may have been flawed.

Groninga said members are not paying their dues because they are hurting financially.

Wednesday Councilman Mike Villalta came up with a solution. At the City Council meeting, during a hearing on a contract renewal with an economic development firm, Villalta, who is a Chamber of Commerce member, proposed using Redvelopment Agency money to make up for the decrease in city funds.

For years the Redevelopment Agency has contributed $970 to the chamber per month to assist the city with its contribution, which was $2,029 each 30 days in the 2007-2008 fiscal year.

A contract between the Chamber of Commerce and the Redevelopment Agency is expected to be drawn up and presented to the City Council June 18.

Jones said he's happy with how the problem is being resolved.

"It's great since the Redevelopment Agency has the funds to do it," Jones said.

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com