Simi Expects No Layoffs Despite Deficit

Simi Valley officials said Tuesday that they do not expect to lay off city employees or cut services despite a projected $1.5 million in unexpected expenditures this year and an expected $362,150 budget deficit next year.

However, officials said they will probably have to eliminate some programs, reduce spending on equipment and supplies and possibly postpone filling some job vacancies to compensate for next year’s deficit.

“There’s going to be some pain,” Mayor Greg Stratton said. “We certainly don’t want to go any further into our reserves than we already have.”

Stratton said the anticipated $1.5-million gap between revenues and expenditures during the fiscal year, which ends June 30, is largely the result of the city’s purchase of a historic church that it wants to convert into an arts center. The city used $825,000 of its general fund to buy the church in March.

Other expenditures include more than $170,000 the city has been forced to pay the county for booking prisoners into County Jail and collecting property taxes. The fees were mandated by the Ventura County Board of Supervisors in September to make up for about $6 million in state funding cuts. The county’s 10 cities are considering a legal challenge to the new fees.

The fees, combined with the purchase of the church and other unexpected expenses, have contributed to the depletion of Simi Valley’s reserves from $13.7 million to $12.2 million this year, said Ken Schechter, a city budget officer.

But Stratton and Councilman Bill Davis said the city remains in good financial condition. They said they do not anticipate any layoffs or cuts in services in the 1991-92 budget. A preliminary report released last week outlines a $28.2-million budget plan that includes a projected $362,150 operating deficit.

In the budget report to the council, city staff recommended the elimination of a number of programs, job positions and equipment orders to balance next year’s budget.

The following is a partial list of potential cuts identified by city staff:

A vacant public relations position budgeted at $51,900 a year; an assistant city attorney position at $79,700 a year; an associate planner position at $48,500 a year; outside consulting services at $24,500 annually; the purchase of computers and other equipment worth $200,000; travel expenses for the City Council estimated to cost $9,900 next year; a sidewalk and repair program to cost $125,000; and a household hazardous-waste program to cost $185,000.

The council is scheduled to discuss the report at its meeting Monday.

Meanwhile, Simi Valley residents are invited to attend a budget meeting at 6:30 p.m. Thursday in the Community Room at City Hall, 2929 Tapo Canyon Road.

City officials said the meeting will offer residents the opportunity to ask questions and make suggestions about the 1991-92 budget. Copies of the preliminary budget are available for review at City Hall and the city library.