Higher Fees, Tighter Belts Needed to Stanch City's Red Ink

Alamedans could see boosts in parking rates and parking fines, shorter library hours and reduced city services under cuts proposed to close the city's widening budget gap.

A city staff report prepared for the City Council's upcoming budget workshop on April 18 forecasts that anticipated shortfalls in city revenues without fee hikes and budget cuts would wipe out the city's reserves within five years.

The workshop will focus on the next two fiscal years, 2013-14 and 2014-15.

"Staff is proposing to balance deficits totaling $2.7 and $4.4 million in the General Fund for Fiscal Years 2013-14 and 2014-15 through a combination of ongoing reductions, increases in existing revenues, the limited use of one-time funds in Fiscal Year 2014-15 and through the carryover of budget savings in the General Fund projected for Fiscal Year 2012-13," says a staff report from City Manager John Russo.

The city's budget reserve policy calls for the city's General Fund to maintain an available fund balance of 20 percent of General Fund expenditures, the staff report notes, but with no adjustments, the anticipated deficit for fiscal 2013-14 will reduce the reserve to 18 percent by the end of the fiscal year, the staff report says.

Details of the projected revenues and expenses, along with proposed revenue increases and expense cuts, can be found in a PowerPoint presentation on the budget prepared by staff for the workshop. It is attached to this article.

Staff is asking the council to provide direction on preparing a budget to submit for council consideration on May 28.

The council workshop meeting begins at 7 p.m. in council chambers at City Hall.

------------------------

Don't miss any news from Alameda Patch. Get the day's headlines and events – plus any breaking news alerts – by subscribing to the Alameda Patch email newsletter.