RIPON – When the revenue totals rolled in at the end of last month, Ripon City Administrator Leon Compton was expecting to see several hundred thousand dollars.
Instead he saw $2,125.82 in sales tax revenue given to the city – down from the $537,623.17 that they were awarded the previous month.
And even after having staffers spend hours trying to get an answer from the State of California as to why the number was so low, Compton – who brought up the charts and the financial numbers when talking about the need for at least voluntary furloughs – said he felt that the State of California was likely going broke, and is now withholding money from cities in order to cover bills.
And it’s probably not going to get any better anytime soon.
While last month Compton was a proponent of waiting for another month to see how things would shape up, he now feels that the voluntary furloughs – and more than likely the inclusion of the two collective bargaining agreements that represent the Public Works and Police Departments – are the last line of defense before people have to start getting cut.
“Employees are all that we have left,” Compton said. “Anything with any meat on it has already been cut by the council, and all we have left are people – and that’s the one thing that we don’t want to cut.”
The City Council unanimously voted to step up the negotiations with the city’s two unions to determine whether they want to go with the furlough days or layoffs in order to cut the necessary five percent to come in under budget.
Keeping as many people in their jobs as possible is something that almost the entire council was in agreement on.
“We have to determine as a council what we’re going to cut and that’s that. The longer that we put this off, the worse that it’s going to be – period,” Councilman Garry Krebbs said. “At that point we’re going to have to look at layoffs and people are going to be pointing fingers and they’re going to be right – we took a lot longer than we should have.
“I’m definitely in favor of furloughs because at least that way everybody gets to keep their jobs.”
But making sure that tax revenue starts to flow in within the next several months could end up being the key to determine Ripon’s true financial future.
In 2006 the city was able to take in $10.4 million and spend only $8.1M – allowing them to build a sizable reserve that has helped them weather the redundant fiscal situation they’re facing now.
But so far in 2009, only $6.9 million in revenue has come in while $7.9 million has already been spent – even after the city took strident steps to cut spending across the board.
Mayor Chuck Winn is worried that the scenario might be even worse when the next fiscal year rolls around in July.
“We’ve only got two-and-a-half months until July and I think that it’s entirely possible for things to get a whole lot worse when that time comes,” Winn said. “I don’t think that anything is going to end up in better shape in the short term, and that is what is going to affect a lot of people.”
Instead he saw $2,125.82 in sales tax revenue given to the city – down from the $537,623.17 that they were awarded the previous month.
And even after having staffers spend hours trying to get an answer from the State of California as to why the number was so low, Compton – who brought up the charts and the financial numbers when talking about the need for at least voluntary furloughs – said he felt that the State of California was likely going broke, and is now withholding money from cities in order to cover bills.
And it’s probably not going to get any better anytime soon.
While last month Compton was a proponent of waiting for another month to see how things would shape up, he now feels that the voluntary furloughs – and more than likely the inclusion of the two collective bargaining agreements that represent the Public Works and Police Departments – are the last line of defense before people have to start getting cut.
“Employees are all that we have left,” Compton said. “Anything with any meat on it has already been cut by the council, and all we have left are people – and that’s the one thing that we don’t want to cut.”
The City Council unanimously voted to step up the negotiations with the city’s two unions to determine whether they want to go with the furlough days or layoffs in order to cut the necessary five percent to come in under budget.
Keeping as many people in their jobs as possible is something that almost the entire council was in agreement on.
“We have to determine as a council what we’re going to cut and that’s that. The longer that we put this off, the worse that it’s going to be – period,” Councilman Garry Krebbs said. “At that point we’re going to have to look at layoffs and people are going to be pointing fingers and they’re going to be right – we took a lot longer than we should have.
“I’m definitely in favor of furloughs because at least that way everybody gets to keep their jobs.”
But making sure that tax revenue starts to flow in within the next several months could end up being the key to determine Ripon’s true financial future.
In 2006 the city was able to take in $10.4 million and spend only $8.1M – allowing them to build a sizable reserve that has helped them weather the redundant fiscal situation they’re facing now.
But so far in 2009, only $6.9 million in revenue has come in while $7.9 million has already been spent – even after the city took strident steps to cut spending across the board.
Mayor Chuck Winn is worried that the scenario might be even worse when the next fiscal year rolls around in July.
“We’ve only got two-and-a-half months until July and I think that it’s entirely possible for things to get a whole lot worse when that time comes,” Winn said. “I don’t think that anything is going to end up in better shape in the short term, and that is what is going to affect a lot of people.”
