Calabasas has balanced budget, big reserve fund

Despite state and federal fiscal challenges, the Calabasas City Council approved a balanced budget for the next two fiscal years, holding a reserve of more than $20 million—a full year of the city's operating expenses.

The city is estimating nearly $21 million in revenue and $22.3 million in operating costs. The budget is balanced because of the city's reserve.

"Just like your own bank accounts, if you have money in the bank and you spent more than your paycheck was this week, it's still a balanced budget," said Gary Lysik, the city's chief financial officer. "It's only when you go negative that bad things happen."

The bulk of the city's revenue comes from sales taxes (more than 30 percent), utility taxes (20 percent) and property taxes (12 percent), and Lysik said he's not expecting much of a change. Last year the city brought in $20.5 million. This year, they are slated to receive $20.9 million.

Expenditures will remain roughly the same as well. There is a $200,000 increase in operating costs but a large decrease in capital outlay because of several road resurfacing projects that have been completed.

Discretionary spending is at about $1.4 million to help with education funding and open space acquisition.

The city is required to have 40 percent of a year's expenditures in a reserve fund, which they have more than doubled.

"We still have a healthy amount of money in the bank at about 100 percent of one year of expenditures," said Lysik, who said they are at about $20.3 million.

Payroll is the largest expenditure of the city's budget at $8.6 million. There is the equivalent of nearly 94 fulltime employees—in the calculations two part-time employees equal one full-time employee.

There are 21.5 temporary employees as well. It was also noted that there will be no cost-of-living increase for employees next year.

Another top expenditure is the $4.3 million to law enforcement, which is about 2.5 percent higher than last year.

"That's a good thing," Lysik said. "People want to be safe."

About $3.5 million goes to insurance costs, debt service and open space, which is down $100,000 from last year. The public works budget, which is funneled mostly to road repair, landscaping maintenance and street sweeping, is at $2.2 million.

"Through this whole process, all the department heads, including our budget liaisons—who this year are the mayor (Jonathon Wolfson) and city manager (Tony Coroalles)—really scrubbed these numbers to try and find areas that we can reduce while still meeting the goals and objectives of the budget," Lysik said. "I think they've done a really stupendous job."

The main goals of the city budget are public safety, road resurfacing and other capital improvement projects, customer service and satisfaction, education and community programs support, and open space acquisition, Lysik said.

More than $11 million is set aside for 18 capital improvement projects during the 2009-10 fiscal year, including $1 million for Parkway Calabasas improvements and $2.2 million for the Lost Hills overpass. Most of the project monies are coming from grants and other sources. Only $445,000 of general fund money is being contributed.

In 2010-11 the contribution will be even smaller. Less than $200,000 of city money will go toward the $7.1 million worth of 13 projects.

"The bang for your buck is pretty good," Lysik said.

The city also contributes $250,000 to the education fund, $75,000 to the senior education fund and $150,000 to the open space and environmental program.

"Frankly, none of these (discretionary items) have to happen to keep the doors open," Lysik said. "People in the city want to have them and expect to have them. Part of the quality of life here is to have open space and have environmental programs."

Councilmember Dennis Washburn reminded the public that they can view the budget and video presentation on the city's website.

"I think it's important for folks to understand, this happens to be one of the least attended and least controversial meetings of the year, but it's the most significant," said Washburn.

"This is a two-year budget we are talking about, and every nickel that this city takes in is accounted for."

For more information, visit www.cityofcalabasas.com.