Despite $740,000 Deficit, Ventura Council OKs New Budget in 6-1 Vote

VENTURA — After last-minute haggling over how best to make up a $740,000 budget shortfall, the City Council adopted a spending plan for the new fiscal year with one member dissenting.

The council agreed Monday night that if the city cannot cut expenses to close the spending gap over the next 12 months, council members will be forced to dig into an $8.6-million reserve account. The reserves were set aside a decade ago for fairgrounds improvements.

Councilman Gary Tuttle rejected the $132-million budget plan, saying the governing panel was simply trying to avoid making difficult cost-cutting decisions. He also disputed the $740,000 figure and charged that the shortfall is actually closer to $1 million.

“That is too much money to let the city manager cut on her own,” he said. “That is why we are here. Deciding what to cut is a policy decision. Approving this budget is politically easy--but fiscally incorrect.”

He also faulted the new spending plan because it does not set aside money for libraries or future dredging in the Ventura Keys.

Although other council members were uncomfortable with the budget shortfall, they said their method of dealing with the problem is not unusual.

“There’s history here,” Councilman Ray Di Guilio said. “Last year, we did the same thing--last year’s budget was $1.8 million out of whack.”

Councilman Jim Monahan suggested that the city sell an 87-acre lemon grove on the east end if it is so eager to balance the budget.

“If we sell that property, we can balance the budget really quick,” he said.

Marilyn Lueck, the city’s director of management resources, said the $740,000 budget shortfall was caused by a loss in short-term interest earnings on reserves set aside to build different capital projects around the city. Those projects include three skateboard mini-parks, remodeling the city’s police station and street maintenance.

This year, construction on those projects will begin, eliminating the source of interest earnings the city has come to rely on to balance its annual budget.

Also Monday night, the City Council approved a $27-million capital improvements budget and a new $6.5-million line of credit for the downtown Redevelopment Agency, which will be used to help pay for a parking structure and planned 10-screen theater.