Calabasas budget still holds ample reserves

NEW CITY HALL AND LIBRARY- The $41-million Calabasas Civic Center, which opens in July and must be financed, has not put a strain on the city budget, officials said. While many cities and public agencies statewide strive to remain viable during the current economic downturn, one local city finds itself in a strong financial position.

"Some cities are saying this is an economic crisis, but we don't see that here in the city," said Calabasas Chief Financial Officer Gary Lysik, who gave a report on the city's financial health at the City Council meeting last week.

The Calabasas General Fund balance is expected to increase this year by about $300,000, Lysik said. The increase would have been more than $1 million if money hadn't been spent for several capital improvement projects to benefit residents and beautify the city, he said.

The Calabasas reserve is $21.5 million, the same as its general fund. By law, the city is only required to keep 40 percent of its general fund in reserve.

"In a year if we don't get any money at all we can sustain life as it currently exists for one year," Lysik said. "We are in really good shape with 100 percent- that's about $21.5 million. Many cities around have much, much smaller reserve requirements."

"I hope that there are people in the city who are becoming aware of how well the city is doing," City Councilmember Barry Groveman said. "I don't think there are many more important things we are supposed to do when we are elected by them than manage the fiscal house and all the services they need. This is not happening by accident."

The city isn't totally recession-proof.

Lysik pointed to slightly lower city sales tax revenues.

"I'm expecting it to go down a meager amount, maybe $100,000," he said. "There is also a slight decrease in services."

The drop in services might be due to a changing demographic, Lysik said.

"Kids are now growing up. Registration for preschool may be down slightly, not because of a slowed economy, maybe it's because children are getting older. Either way, it's not going to affect the bottom line," Lysik said.

City Manager Tony Coroalles says the city's utilities tax has bolstered the budget.

"Hopefully, we are using it well and residents are seeing the results of that throughout the city," Coroalles said. "We are always very conservative in how we project revenue.

"When we do (the) budget we try to surprise ourselves at the end of the year rather than being aggressive as far as forecasting what kind of revenues are going to come in," Coroalles said.

Groveman pointed to the business community as a major part of the city's success. He also said construction of the new $41-million Calabasas Civic Center hasn't hurt the city's bottom line.

"When we did the Styrofoam ban and when we take up issues with water quality, it's because we have the funds," Groveman said. We are a very good example and I'd like other governments to know that. This is how it should function."