The City continues to be proactive in managing its budget during these economic times. In its Mid-Year Budget Review report that will go before the City Council on Monday, staff will recommend changes to the 2009-10 Budget that will strike a balance between reducing expenditures to offset dips in revenues and ensuring that necessary programs and projects continue.
For the past few years, the City has closely monitored the economic impacts of the nationwide recession and reduced its operating costs well beyond the declines in its revenues. While General Fund revenue has dropped $2.6 million since July 2008, the City has already cut its operating costs by $4 million and has also reduced its staffing levels by 10.6 positions. Because of the City’s foresight, its discretionary reserves remain healthy at 54 percent of annual General Fund revenues.
General Fund revenues are now expected to come in below budgeted levels this fiscal year by $1.7 million, due to the economy’s continuing impact on consumer spending and interest rates. The mid-year report outlines $1.2 million in additional cost savings already achieved this year to partially offset this revenue decline. The City Council on Monday will consider making up the remaining $500,000 in additional spending cuts.
The full staff report is available online at www.cityofmissionviejo.org. The Council meets at 6 p.m. March 15 in Council Chamber at City Hall, 200 Civic Center.
