OJAI : Report Says City in Fair Fiscal Shape

The Ojai City Council heard on Tuesday that the economic recession has not hit Ojai as hard as other Ventura County cities.

City Manager Andrew Belknap, presenting an annual midyear budget report, told the council that Ojai is in fair fiscal shape, primarily because last year’s predictions of an impending recession forced city officials to plan a very conservative 1991-92 budget.

Ojai differs from many cities in the county that are struggling to decide where to make cuts in services, Belknap said.

“We’ve been hit by the recession, that’s clear, but our midyear report indicates that we are basically going along as planned,” Belknap said.

Revenue from sales tax, the single largest component of the city’s budget, is lagging behind previous levels, as predicted, Belknap said.

However, revenues from the city’s bed tax--a charge levied on all rented overnight accommodations--is up nearly 10%.

Councilwoman Nina Shelley said the increase in bed tax revenues could be attributed to a higher percentage of people staying closer to home for their annual vacations.

“People who don’t think they can spend a lot of money to take a long vacation may be coming here instead,” Shelley said.

The other positive note in Belknap’s budget report was that incremental property tax increases in the downtown area would allow the Redevelopment Agency to collect 6% more for local improvement projects than last year.