AGOURA HILLS : Revenue Drop May Mean Cuts, Taxes

Agoura Hills officials are considering cutbacks in city services and the creation of long-avoided taxes to deal with a projected $1-million revenue shortfall next fiscal year.

“It’s going to be a very difficult budget year, to say the least,” City Manager Terry Matz said.

“We’re having a continued negative impact on our sales tax and property tax revenues, and we continue to take hits from the state of California.”

Because of state cuts and tax losses, revenues are expected to fall $662,500 short of the $5.9 million needed to run the city, and another $343,800 short of the required insurance and reserve funds in the fiscal year beginning July 1, Matz said.

If that happens, the City Council may resort to utility taxes or special assessments for people who live near city-maintained land to offset the shortfall, Matz said.

Agoura Hills has avoided both since it incorporated 12 years ago, unlike neighboring cities of Westlake Village and Calabasas in Los Angeles County.

The city may also reduce the services it provides, although no cuts have been discussed in detail.

The preliminary budget is not due for another two months, and a citizens advisory panel has been set up to begin scrounging for budget solutions.

“So far, we have been mostly information gathering, and we really haven’t gotten into any of the discussions yet,” said Darlene McBane, a member of the committee and former city councilwoman.

“The general recession is making things tight, and we already have an austere budget. So any choice we make is going to be difficult,” she said.

The City Council is expected to consider input of the committee during the first week of March.

Public hearings will be scheduled after the preliminary budget is drafted.