Agoura balances $32-million budget

Despite the weak economy, the city of Agoura Hills adopted a balanced budget, saving all community services, retaining a multi-million-dollar reserve and continuing its community grant program.

City officials presented details of the $32-million budget on June 10.

Although revenue to the city has dropped to $11.8 million, the lowest level since the 2005-2006 fiscal year, and expenditures match revenue for the first time in many years, city officials are confident that they can weather the economic storm brewing at the state level.

Nathan Hamburger, assistant city manager, said the city allocates most of its budget to capital improvements, 39 percent, and public safety, 12 percent.

The Reyes Adobe Interchange, an $11.7million capital improvement project, is included in this year's budget.

"Less than 10 percent of the cost comes from our general fund," Hamburger said of the cost of the interchange. The city will receive $7 million in grants for the project, and a variety of fees will go toward its funding, he said.

The total budget was up slightly because of the Reyes Adobe Interchange project, Hamburger said.

Community services, including Reyes Adobe Days, movies and concerts in the park, and other yearly events but not recreation classes, which are self-sustaining, represent 6 percent of the budget, amounting to $1.9 million. In comparison, public works projects, including street paving and other projects, total 10 percent of the budget.

Sales tax to the city is down because of the weak economy, Hamburger said. Usage fees, or money earned through fees to review development plans, are also down. But Hamburger said the corresponding expenditures dipped accordingly. "If those developments don't occur, then we don't need services," Hamburger said. As an example, he said the need for a building inspector, usually hired as an independent contractor, is not needed when new buildings aren't being built.

"We balanced our budget, but it was tight," Hamburger said.

The balanced budget doesn't include potential "takeaways" from the state, he said. Proposition 1A funds, which amount to about $400,000, could be "borrowed" from the state if the governor declares a severe state fiscal hardship. The Legislature would also have to enact an "urgency statute," which would have to pass with a two-thirds vote from each house, Hamburger said.

Although the budget was reduced 5 percent from last year, Agoura Hills Councilmember John Edelston isn't worried.

"We didn't fund everything we would have wanted to if we had the available money," he said. "It was a belt-tightening year."

But a balanced budget and $6 million in a rainyday reserve account—enough to pay for threequarters of the city's yearly expenditures—is evidence of a well-managed city, he said. In fact, the city recently received a boost in its credit rating. The rating affirms that the city is "managing things in a fiscally prudent manner," Edelston said.

Councilmember Bill Koehler said it was "anybody's guess whether the state will suspend Prop. 1A funds." Although he agrees with Edelston that the city will continue to balance its budget without having to tap into its reserves, he said conditions could change if the state takes money from the city to help bridge California's $24-million budget gap.

"If we want to maintain the same level of services to the community, there is the possibility that we would have to reach into our reserves," Koehler said. "This, however, would only be after exhausting all avenues."

Community grants

Several charities, nonprofit and school programs received grants from the city despite tighter budgets. In all, the city gave out $20,000 to worthy school and community programs.

Agoura High School received $4,000 overall—$2,000 toward the school's music boosters, $1,000 for senior Grad Night and $1,000 for its theater program.

Triunfo YMCA received the largest grant of $3,000, followed by the American Cancer Society Relay for Life, Conejo/Las Virgenes Future Foundation and the Friendship Circle, each garnering $2,500 for their cause.

The Agoura Animal Shelter Friends of the Homeless Animals group received $1,000, as did the California Wildlife Center and Meals on Wheels, Inc.

Bookends, a nonprofit agency that helps kids recycle books, received $1,500 from the city.

The Thousand Oaks Arts Festival and the Westlake Village Junior Women's Club each received a $500 grant.