In 20 Years Beaumont Deficit Has Grown From $600,000 to $6 Million
By: Libi Uremovic | Original Article at patch.com
On Tuesday, May 16, 1995 Steve Tuckey wrote an article in the Record Gazette regarding the City of Beaumont’s $600,000 Deficit.
City officials are taking seriously the project budget deficit approaching $600,000, but are not planning any tax increases or service cutbacks so far.
Alan Kapanicas, interim administrative services director, said the estimated $500,000 – $600,000 deficit is the result primarily of shortfalls in revenues this year and steps must soon be taken to make up both this year’s gap and nearly $1 million in past deficits.
Interim City Manager Pat Smith does not foresee any cutbacks.
“We definitely have to grow our way out of it,” he said. There is just no place else to cut. That is why we have set ourselves on the path of economy development that we have.”
Smith Noted that with the new water treatment plant coming in service this year, real estate related municipal revenues should be on the rise.
“I think this is something we are all really excited about.” he said.
City Councilor Roger Berg agrees there are no taxes or fees to raise to meet the deficit.
“In order to solve it, we are going to have to tighten our belt in some areas,” said Berg, although he declined to specify what areas.
While Kapanicas stressed the shortfall in revenues, Berg noted the city has some unusual one-time payout this year such as the settlement of high-level personnel contracts and lawsuits.
The most critical personnel situation that the city will have to settle in the next few months is the city manager’s status.
Smith has been running the city on an interim basis since last November when Dayle Keller was abruptly fired. Sgt. John Acosta has assumed his police chief duties in the interim.
Berg thinks the post can be filled using present city personnel, and although he did not want to say that he wanted Smith back running the police department on a full-time basis.
“We are looking at different ways of doing things using the personnel we have now.” said Berg.
Berg said there must be some plan to recoup the deficit, although he did not think that it could be accomplished in a year.
The most serious shortfall in revenues occurred in the property tax and franchise ee categories.
Actual property tax receipts were 21 percent below projections as of March 31, while franchise fees were off 66 percent.
Building permit revenues were also 60 percent below expectations.
All in all, revenue came in 16 percent below projections as of March 31.