The City Council increased the bed tax, charged to customers staying in a hotel, from 8% to 10%. The increase will generate an estimated $140,000 a year, which would help to close the city's projected $2.2 million shortfall in the 1993-94 budget.
Shortly before the city cut $400,000 in salaries and programs to help close a nearly $1 million budget shortfall, the city's managers and supervisors asked the City Council to consider giving them what they termed long-overdue raises.
Arcadia police and firefighters have voted to defer a portion of their salaries and health benefits to help close the city's budget shortfall. In total, employee pay and benefit deferments will free up about $300,000. The city is trying to close a $600,000 deficit this fiscal year in its $48 million general fund budget.
The City Council approved a $25.7 million general fund budget after resolving a $418,000 projected shortfall and agreeing to the closure of City Hall on alternate Fridays.
The new City Council has several options to try to fill the projected $2.2 million general fund budget gap. Options include dipping into city reserves, raising taxes and fees, salary cuts and layoffs.
The salaries of city managers in the area have come under scrutiny following the city of Bell's scandal involving overpaid city officials. Bell's now-ousted city manager Robert Rizzo was earning close to $800,000. Arcadia city manager Don Penman's salary of $214,032 is shown in a chart along with other nearby city managers.
The City Council agreed that private karaoke rooms, which have been associated with criminal activity in the area, should be barred from the city. The proposed ordinance, which will be considered August 3rd, would allow alcohol in restaurants with karaoke.
City administrators and negotiators for the Arcadia Police Department have not yet reached a contract agreement. Officers want an immediate 10% raise for the first year and 4% increases the second and third years. City council has offered salaries that would make Arcadia police the second or third highest paid in cities surveyed.
Vons Companies will close 11 supermarkets, lay off 250 employees, and dramatically cut executive salaries and benefits following a $20.9 million quarterly loss.
Local city governments in the San Gabriel Valley and Whittier are realizing the future costs of pensions and retirement benefits for their employees. The costs will be enormous and city governments need to save money for their future obligations. Arcadia's retiree medical cost is $375,062 this year and its unfunded health liabilities for current employees and retirees is $10.3 million. Unfunded health liability is the amount that would be needed to pay for all health obligations to current employees if they were to retire today, and for all retirees. Other cities' obligations are shown in a chart.
Arcadia city wants ban on single-use plastic bags just 6 months before a statewide referendum goes to California voters. If adopted, it would affect approximately 36 Arcadia businesses and be implemented in two phases. Phase 1 would begin in early June and would apply to grocery stores with $2 million+ in annual sales, such as Vons, Albertsons, 99 Ranch Market. Phase 2 would include smaller businesses, like pharmacies and convenience stores, and would be implemented 6 months later. See also Arcadia Weekly, p. 4, April 21, 2016.
Property owners overwhelmingly rejected the city's $2.2 million tax increase Tuesday, casting "no" votes by a 2 -to- 1 margin against the Fire Suppression District.
City of Arcadia to split cost of fixing critical ballot error with Anaheim-based election consultant Martin and Chapman Co. Both the city and Martin and Chapman have agreed to pay $5408 each to fix a Chinese language error in the April 2012 City Council election.
City staff projects a $3.5 million deficit in the 2010-2011 fiscal year, due in large part to rising retirement costs. City Manager Bill Kelly told City Council that even with the Caruso mall, expansion at Westfield Shoppingtown and at Rusnak auto dealership, the city still faces a budget shortfall in about 5 years. He suggested a library assessment district as a potential revenue source.
City officials have authorized for the first week of October a previously postponed mail-in vote on whether to reallocate street lighting assessment fees. Residents will vote on a reorganization that would make the payments correspond fairly to the benefits received.