In response to the ongoing coronavirus pandemic, the Walnut Creek City Council at its Tuesday meeting approved $6.5 million in spending cuts and moved to use $3.6 million in reserve funds to close a projected $10 million budget gap for the fiscal year that ends June 30.
The cuts will come from a variety of places, including delays in hiring, redirecting money from existing capital projects, restricting city purchases to essential ones only and suspending travel and training expenses.
City staff projects a $13 million loss of revenue, moving the city from a $3 million surplus to a projected $10 million general fund deficit for the 2019-2020 fiscal year.
The cited reason — loss of sales tax revenue, transient occupancy taxes and program revenues related to the cancellation of the arts and recreation classes and programming as a direct result of the pandemic and resulting Bay Area-wide shelter-in-place order.
In mid-April, the City Council was told to expect a budget deficit of between $5.5 million and $10 million for the current fiscal year, depending largely on when the shelter order is lifted. The lower figure was
based on a May 3 end to that order; it has now been extended to May 31.
Councilman Justin Wedel told his fellow members that using reserve money amounted to “kicking the can down the road,” and that more cuts in city spending are needed to solve the problem. He equated using reserve money to throwing good money after bad.
“To this point, it seems like that’s exactly what we’re doing,” Wedel said.
The four other council members strongly disagreed, saying that they’re glad the city has set aside ample money over the years for such a rainy day.
“If a 60 percent drop in revenue overnight isn’t an emergency, I don’t know what is,” Councilman Matt Francois said.
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Hey big spenders. Otherwise known as the Walnut Creek City council.
Hopefully the council is still not spending tax payer money to support the Lesher or the Big McMansion Liebrary. Yes, LIE. Ten years ago this month an over budgeted library put the city in the red. Any one remember how many employees lost their jobs?
Listen City of Benicia, don’t get suckered into over spending on a library. Learn from Walnut Creek’s mistake.
Are the taxpayers still subsidizing the library coffee shop?
And do we still own the Glenhaven residence for unhoused actors?
And, cut the arts program. They’ve already painted everything that is nailed down in the city, lightposts, traffic signals, etc. Enough Drowning Baby Heads and Bullman/Bulldog art, it’s trash.
108RS
i agree,
Wow, something negative enough to get Auntie Barbara to agree. Must be pretty bad! LOL
I like and agree with Councilman Justin Wedel. I don’t think they could have closed the entire budget-gap this late in the fiscal year, but some cuts should have been made. I wonder how they will make budget NEXT year, because Broadway Plaza and the downtown restaurant district are going to be hurting through the end of the year, if not longer.
BTW- Concord, Pleasant Hill, etc… will ALL need to make deep cuts in their budget, which means layoffs and lower benefits.
You’re telling me every full time City employee is “essential?” I resent these government bureaucrats patronizing me with the slogan “we’re all in this together.” Easy for them to say while sitting at home collecting full compensation and us business owners, here in Walnut Creek, are told by these same bureaucrats that our livelihoods are not essential. This economic train wreck was caused by the government sector and will only get worse with their unfunded pensions. Once again, the public sector has failed it’s citizens. Term limits desperately needed from City Council to US Senate.
So I guess all those cops (aka government employees) that have been protecting your business while you were ”sitting at home” aren’t essential in your mind. 🧐
And that Wedel guy sounds pretty ignorant. Grandstand much? Yeah, cut all the arts stuff that can’t pay for itself, but me thinks if there’s ever a time for emergency reserves….it’s during an emergency.
It’s extremely disappointing that there were no staff and salary/benefit cuts in this environment. This is an EMERGENCY, if you won’t make cuts to people at this point, when will you????? Do you really think you need to maintain the current salary and benefits structure for non-police services?
Need to keep in mind a city must provide a set amount of services to each residence and business. Cost of those services generally rise each year mainly due to cost associated with employees.
A city having more expensive homes on medium to large lots has a built in cushion between property tax revenue and services costs.
A city such as one east of Pittsburg, allowing small lower priced homes to be built on postage stamp sized lots has little to no cushion.
Problem of having no cushion in any type of economic downturn, such as a shelter in place or a recession, is a tribute to management of city and past city councils.
Now is not the time to be shopping in WC. WCPD will be out in force attempting to increase city revenue via traffic citations even more so than they usually are.