Monday, Feb. 01, 2010

City's financial troubles continue

All departments will be asked to cut, even police, fire

The necessity for upcoming spending cuts was revealed by the city manager through a press release late last week.

Property tax revenue for January was down 63 percent and sales tax dollars dipped 9 percent, according to the press release issued by Steve Rath.

"Eighteen months ago we anticipated a significant decline in tax revenue," Rath stated in the release. "However, the decline has accelerated because of the continued economic downturn and the uncertainty as to when it will improve."

The city laid off more than 20 employees, including three police officers, in 2009.

Last November voters approved Measure A with 82 percent of the vote. It allows salaries of firefighters and police officers to be paid through a half-cent sales tax.

City officials placed the measure on the ballot in hopes that it would keep Los Banos from laying off more emergency services personnel. The chances of leaving the police and fire departments intact are not as certain as they once seemed.

"No public service can expect to be spared," the press release states.

In a subsequent telephone interview, Rath said Measure A has helped and he would "hate to have to lay people off." He said the city is not at the point where layoffs will definitely occur. But, Rath said, cuts in services in every department are being looked at as the city gets prepared for the next fiscal year.

More information on this issue will be available in Friday's Enterprise.