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City taking steps to cut costs
Ventura manager announces hiring freeze, proposals to trim expenses
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More from Local NewsFaced with sagging city revenues and a grim state and national economic picture, Ventura City Manager Rick Cole announced Wednesday a series of cost-cutting moves, including an immediate hiring freeze.
The city is facing a $4 million shortfall in the next fiscal year that begins July 1, and Cole plans to sit down with representatives of city employee unions to discuss ways to trim costs, possibly deferring promised raises. Layoffs or buyouts also could be needed if city revenues continue to worsen, he said.
Other proposals include closing City Hall every other Friday, canceling or deferring city contracts and implementing spending cuts now rather than waiting until July 1.
"We felt we need to take action now and not wait for an emergency," Cole said, citing rising fuel costs, sagging housing sales and volatile state and national economies.
He plans to take his proposals to the City Council at a meeting tentatively scheduled for April 1.
Spending already has been reduced by 2 percent in all city departments in the current fiscal year. Some projects were postponed or canceled, and staff has identified dozens of other cost-saving steps that could be taken now.
Parking garages might not be cleaned as frequently, fewer sidewalks could be repaired and park renovations and beautification efforts could be cut, said Public Works Director Ron Calkins.
"It's clear we need to take immediate and decisive action," Calkins said. "The economy around us is changing and we need to change with it."
Like most cities, Ventura depends heavily on sales and property tax revenue to pay for vital city services. City sales tax revenue is down 10 percent this year, or $2.8 million, and is not expected to rebound soon, said Jay Panzica, Ventura's chief financial officer.
"Things are likely to get worse before they get better," he said.
City staffing levels are better than in recent years, with 13 unfilled vacancies out of 673 budgeted full- and part-time positions, Human Resources Manager Jenny Roney said.
The city spends $72 million a year on salaries, overtime, benefits and worker's compensation — more than 76 percent of its $94 million operating budget, she said.
Cole for the first time acknowledged that layoffs and buyouts could be necessary. Until now, he was hopeful that unfilled vacancies and natural turnover would be enough. "I think that is less realistic now," Cole said, adding that people are less likely to leave their jobs during a recession.
When Cole arrived four years ago, he launched a three-year campaign to eliminate a $3 million structural deficit. The city achieved that goal within two years by cutting costs, benefiting from surging housing values and persuading city employees to temporarily suspend pay raises.
Deferred raises have since kicked in, and additional pay boosts are on the horizon. Fire Department employees got a 4.5 percent raise in January. Police officers got 3.5 percent in January and are scheduled to get another raise in October, as high as 12 percent, officials said.
During a fiscal crunch in 2003, the city made deals with employee groups for no raises and no layoffs.
"This looks worse to me than 2003," Councilman Bill Fulton said. "The next couple of years are going to be pretty grim.
Lots of other cities are taking even more dramatic steps."
Posted by SF1943 on March 20, 2008 at 4:31 a.m. (Suggest removal)
Let me see if I have this right....The City
Council passed a "TAX" to hire more safety personnel and now that its implemented, they now want to impose a hiring freeze?
Posted by rcole on March 20, 2008 at 7:24 a.m. (Suggest removal)
Our goal is a sustainable level of services,a sustainable level of revenue and sustainable levels of compensation for the people who provide the City with vital services. In a slumping economy, that involves some tough choices, especially because we remain committed to improving emergency response times for fire and police, increasing police patrol Downtown and in gang hotspots and bringing back school resource officers to help keep our schools and community safe. For more info on what we are doing, see:
www.cityofventura.net/cmblog
Rick Cole
City Manager
Posted by scott on March 20, 2008 at 7:30 a.m. (Suggest removal)
the arts don't pay the bills do they. thats why artists are poor.
Posted by pkck on March 20, 2008 at 9:16 a.m. (Suggest removal)
This is not an overnight revelation of going broke. It was feared and known before the sales tax increase was proposed. A series of wishes to get through it did not pan out. Stop wishing and get serious. Time to make the cuts in recreation, arts, business development, neighborhood repairs, educational assistance, and silly no growth consevatory pledges. Maintain the basic essentials of fire, police, and water facilities. Bring back the sales tax increase with no strings, fancy ads, or political agendas that don't address the fact that the city is going broke.
Posted by Wendy_Halderman on March 20, 2008 at 10:35 a.m. (Suggest removal)
It seems Venturans helped hammer the nail in their own coffin by defeating Measure A. Long-term preservation of our community can only be achieved by growing (at least a little) more than is needed to overcome stasis.
Thanks for keeping us informed, Mr. Cole. It's time for all of us to stick together and fully leverage our human, intellectual and financial capital.
Posted by jprieto on March 20, 2008 at 1:55 p.m. (Suggest removal)
I bet Cole does not defer his raise.
Posted by shaver_one on March 20, 2008 at 4:47 p.m. (Suggest removal)
1. Rick Cole is looking for another job, in another city.
2. Time to rethink Wal-Mart. Ventura needs the sales tax revenue.
Or, Ventura can continue to support Oxnard. We thank you for your sales tax dollars.
Posted by I_LOVE_VENTURA on March 20, 2008 at 7:32 p.m. (Suggest removal)
I completely agree with "pkck" - with the economy and city budget being what it is, it is definitely time to stick with the basics that Ventura needs. Police and Fire being key! There is no reason any city department needs to lose employees right now - especially police and fire! I guarantee the city can find the money so that nobody loses their jobs.
Posted by 50Luva on March 22, 2008 at 9:50 a.m. (Suggest removal)
Why didn't the article mention that some police will be "laid off"? Why doesn't Rick Cole cut his salary?
I think that the timing of this article and the one about the crime rate is a bit fishy. Crime rate is now up and police are going to be laid off to save $500,000. How does that make sense?
Posted by smithjc on March 22, 2008 at 11:58 a.m. (Suggest removal)
the city's sales tax revenues are never going to be where they need to be as long as the city is so anti-business. they want this to be a "bedroom community", and those just can't support themselves without onerous property taxes. we need commercial encouragement, not DIScouragement.
Posted by Tom_Johnston on March 23, 2008 at 5:49 p.m. (Suggest removal)
This "revelation" make the recent city effort with regards the "911 opt-out" even more of a mystery.
Surely thousands of people will opt out, costing the city revenue. Most will go for the "1st FREE Call"...in better than 30 years living in Ventura I've called 911 exactly once.
Think twice about the Wal-Mart option, they are notorious for extracting concessions from local government and the depressing effect they have on small and even large chain business won't help tax revenues at all. The Walton family will just get even more obscenely rich. Rather than a Wal-Mart, we need a store that offers a unique regional appeal like an Ikea (thought I don't think we'd ever get that here) that would draw shoppers from all over Ventura and nearby counties.
Mr Cole's recent job hunting does sort of make one wonder if it was about "getting out while the getting was good"
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