Pollution mandates, fewer state funds make for tight Agoura Hills budget

Agoura Hills city officials made several important belttightening moves at their May 28 budget workshop.

Although reserves have fallen, the city nevertheless presented a balanced, $11.8-million budget with little reduction in community services.

In his report to the City Council, City Manager Greg Ramirez said the 2008-09 Agoura Hills budget demonstrates the "narrowing trend we are seeing between annual general fund revenues and expenditures."

Translation: Costs are going up, revenues are going down and savings are taking a hit.

Officials expect to generate $12.4 million in revenue for the city and spend a little more than $12 million from July 1, 2008, to June 30, 2009. The city's reserve fund dropped from 7 percent to 3 percent in one year, Ramirez said. In comparison, the budgets for 200304 and 200607 had 16 percent and 14 percent reserves respectively.

Ramirez outlined several reasons for the tighter budget. Loans and grants amounting to $4.8 million for the Kanan Road interchange work were paid for by the city this year, but will be reimbursed through state and federal agencies by 2010. Another $4.2 million for interchange projects will be reimbursed to the city by 2011.

Drowning in expenses

While Agoura Hills waits for reimbursement for its public works projects, a ruling by the Los Angeles Regional Water Quality Control Board is creating pressure on another front, forcing the city to spend more to clean up pollution in Malibu Creek.

Cities and other agencies are being required to monitor and measure the pollution that enters the local watershed, and install trash capturing devices near certain "impaired" bodies of water.

"The whole issue is going to cost us millions upon millions of dollars," Ramirez said. A coalition of cities, including Westlake Village, Calabasas, Beverly Hills and others, has been formed to attempt a compromise with the regional board and come up with more reasonable standards, he said.

"As of now, the mandate is zero," Ramirez said regarding how much pollution is allowed to enter the waterways that ultimately lead to the ocean. "Everybody I've talked to says this is impossible. . . . I don't know how we should clean up after wildlife."

Agoura Hills, in fact, was issued a "notice of violation" by the water board, Ramirez said. The board wants information about what the city is doing to comply with the anti-pollution mandate and proof that the city isn't contributing to the watershed pollution.

Ramirez said Agoura Hills and other cities are entering an appeal.

He said installing filtration systems in new developments is feasible, but retrofitting older businesses and residences is not as easy. The city is trying to educate the public about urban runoff and pollutionfighting measures such as cleaning roof drains and not hosing down driveways, but Ramirez said the process has been "extremely challenging."

"This issue can potentially single-handedly bankrupt cities," he said. The unfunded water pollution mandate, he said, doesn't offer any solutions about how to clean up existing pollution or how to pay for the cleanup and future preventive measures.

Ramirez said there is a movement afoot in Los Angeles County to pass a bond measure to help pay for the cleanup.

Cops, brick and mortar

The two largest expenditures for Agoura Hills are law enforcement and public works, Ramirez said. Each carries an annual cost of over $5 million.

The next public works projects are the widening of the Reyes Adobe Bridge, which will cost $10 million, and the Chesebro Road interchange project, estimated to cost about $20 million.

Upcoming projects are expensive, Ramirez said, but between state and federal grants and other special funds designated for interchange work, the city foots just a portion of the bill. State and federal money, however, doesn't always arrive in time, causing the city to wait for reimbursement.

The declining state economy is directly affecting special funds for law enforcement, Ramirez said. "Brulte" funds, a state funding mechanism to fund law enforcement, have been reduced by $100,000. The city will use money from the general fund so sheriff's services will not be disrupted.

What about schools?

Las Virgenes Unified School District Superintendent Donald Zimring, board President Cindy Iser, and board members Gordon Whitehead and Dave Moorman attended the meeting to request that the city continue to support the school district's technology program.

Last year Agoura Hills chipped in $270,000.

But Ramirez said spending was tight this year and that another large contribution would "unbalance the budget."

"It's more money than we can shake from the budget," Councilmember Bill Koehler said.

Rather than a taking a contribution from the city's general fund, Koehler suggested the school district could use money it received from Agoura Hills for the city's purchase 18 acres of school property near Yerba Buena Elementary.