In a variety of ways, the city administration of Los Alamitos has tried many methods to inform its citizens that without additional revenue, the services they have come to expect and the quality of life they expect could soon change.
In fact, city officials have accepted draconian cuts and drastic measures to bridge this year’s $1.4 million budget gap.
During the council’s discussion to put a sales tax measure on the fall ballot, city officials recounted the long fall from financial stability, citing mostly actions that predate the existing council.
City manager Chet Simmons said since 2009, the city has cut 26 full time positions, marking a 27 percent overall reduction in expenses while generally, maintaining the same level of service to the public.
Los Alamitos, like many cities across California, are facing financial troubles because of huge amounts of pension debt obligations for past employees.
Of course there are other factors, including the state changing procedures to capture revenues once enjoyed by the cities, said Simmons.
While the city had previously reduced health care benefits for employees and implemented a two-tier retirement system to save money, it wasn’t enough to stem the red ink.
According to Simmons’ research, even those actions were not enough so the city implemented a new tiered salary system and also cut benefits for newer employees.
“The city can no longer afford to pay them,” he said.
Moreover, Simmons said many employees in the city “are now wearing many hats,” doing the jobs of multiple employees.
Even then, he said, excluding the safety sector, current employees agreed to a five percent pay cut to help close the budget gap. “They (city employees) recognize the position the city is in,” said Simmons, and are willing to do their part.
Simmons said the cuts did not only affect the rank and file employees, as he, the Chief of Police and other top administrators also agreed to a five percent pay cut.
Even though the budget was balanced, the current strain on city staff “is unsustainable for the long-term.”
Simmons said the city was also ramping up its economic development efforts and taking other external measures to enhance the revenue streams coming into the city.
“Making cuts,” however, “is never enough,” said Simmons.
The city manager said the city was outsouring as much as possible to save additional funds. “The city’s workforce, have certainly done what they could to make a difference, he said.
The city has nonetheless voted to give voters an option to approve a sales tax on the November ballot to reverse the financial trajectory of the past decade (see related story).
