By Winston Chua

    ARCADIA – The ArcadiaCity Council has made clear plans to brace itself for economically challengingtimes. Facing what was a $2.6 milliondeficit, councilpersons took action to make sure the city is not spending morethan it is taking in.

    For the city council, that meant freezing positionsand updating fees to adjust for the staggering economy. It also meant cuttingsome of the benefits that city workers, because of their tenure, were entitledto for the coming fiscal year.

    “The economy hits the taxpayer and government hard ina rough time like this,” said Arcadia Mayor Pro Tem Peter Amundson. Thisposition means that Amundson is authorized to fill in for Arcadia Mayor JohnWuo in his absences. Both Amundson and the council are known for being fiscallyconservative, but even their past decisions could not avoid the debilitatingeffects of the economic crisis.

    About three quarters of the way through the lastfiscal year, the Arcadia City Council noted that they would have less incomeand sales taxes than they had anticipated.

    As a result, Amundson and the council asked all citydepartments to cut about 5 percent of the budget.

    “We wanted to cut portions of the departments thatwill not be bring hurt to the community,” said Amundson.

    Amudnson said that despite the broad-reaching cutsproposed in the new budgets that there is “nothing in the budget that citydepartment heads could not live with.”

    The city council, in wanting to make the new fiscalyears as painless as possible, chose not to open new positions or increasesalaries in certain departments, even though certain city positions were up forpay raises. Benefits were eliminated and increases that employees were entitledto were left off the table to close the budget gap. These cuts closed the city deficitto around $2.3 million.

    To pay for the around $300,000 that was stilloutstanding, the city tapped into its reserves. More than $7 million in reservemoney is set aside for emergency uses.

    The city council said that they did everything, even“cutting to the bone” the new budget for 2009 – 2010.

    The city council must balance the budget because ithas pledged to do so in its City Charter. That charter states that “the totalof proposed expenditures shall not exceed the total of estimated income plusavailable reserves.”

    He said it is the responsibility of the council toact as wise caretakers of the city’s money and that the council did not waituntil the end of the fiscal year to bring about the necessary changes to thenew year’s budget.

    1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

    Loading ... Loading …

    Comments are closed

  • You Only Live Once! It’s back with a winter time swing, so come down and join some of the Arcadia Recreation Department’s staff for an evening of fun at the Dana Middle School Gym, 1401 S. First Avenue in Arcadia, from 5-10pm....
    Happy New Year! Rose Parade Float Trophy Winners...
    AND AWAY THEY GO… The Valentine Derby steering committee is looking forward to a wonderful fundraiser party at the Santa Anita Race Track this Saturday, April 12. The event will feature a silent auction during the cocktail hour, a seated dinner a...
    With an all-time high of 875 in attendance, Methodist Hospital’s 19th annual Mardi Gras also raised a record-breaking $144,000 to benefit the hospital’s important cancer program....
    The Pasadena Guild of Children’s Hospital Los Angeles has pledged a $3 million endowment to fund the Pasadena Guild Chair in Developmental Biology and Regenerative Medicine at Children’s Hospital Los Angeles....
    Directory powered by Business Directory Plugin