SANTA PAULA : Reserve Allows City to Cover Shortfall

Santa Paula spent about $23,000 more than it took in during fiscal 1991 but covered the deficit from its $1.3-million reserve, according to an audit accepted by the City Council on Monday night.

“The revenue didn’t keep pace with expenditures, but we did well,” city Finance Director Cindy Kretzer said. A drop in sales tax and construction permit revenues caused the shortfall for the fiscal year that ended June 30.

Sales tax revenue dropped $78,000 from the previous year.

Although construction fees also fell about $67,000, Kretzer remained hopeful. “We feel pretty fortunate we never relied on growth and development,” she said.

The budget for fiscal 1991 totaled $8.2 million, compared to $10.6 million for this fiscal year. The Council has not cut any services yet but “will have to take some action” if the $1.3-million reserve continues to decline, Kretzer said.

In other matters, the City Council delayed submitting comments on a proposal by the Ventura County Solid Waste Commission to reorganize the county’s solid waste management system by July 1.

Eight cities, including Santa Paula, belong to the Ventura County Regional Sanitation District. Simi Valley and Moorpark operate their own solid waste programs.

Under the proposal, a single countywide organization would manage a program for all 10 cities and the county.

City officials are scheduled to submit comments regarding the proposal by Jan. 10, but City Administrator Arnold Dowdy said more time is needed to study the issue.