Many San Gabriel Valley cities are seeing an increase in property tax revenues in the 2009-2010 fiscal year, namely San Marino, Arcadia, Bradbury, Alhambra and South Pasadena. Arcadia's property tax revenue is expected to be $3,359,282.80 compared to $3,294,314.77 in 2008-2009. Other cities' figures are given. In the average city, property taxes make up 11% of the city budget.
Arcadia officials project a $1.2 million budget deficit and have approved a combination of using reserve funds, hiring freezes, and other budget mechanisms to offset it. In order to avoid deep cuts in city services, the City Council has approved a plan to defer the city's slurry sealing program (street surface maintenance) for one year.
The Arcadia City Council has approved a $46 million budget for fiscal year 2009-2010. The city made deep budget cuts across the board, including freezing positions and cutting employee travel. The budget includes roughly $2 million in cuts and concessions from all four city employees' unions, and projects about $45.1 million in estimated total revenues, $45.7 million in proposed expenditures, and $270,000 in employee compensation and benefit deferrals.
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.
Arcadia voters will decide, in a special election next week, whether or not to approve ballot Measure A, which seeks to protect the city's right to collect taxes on cell phone usage. Measure A would not raise any taxes. The city already collects taxes on residential cell phone usage and is seeking to legally protect that practice by redefining what constitutes a telecommunications tax.
Public employees' retirement and pensions are costing cities up to 25% of the city budget. In March, CalPERS announced its stock portfolio had lost 39.8%. Costs for retirees are ballooning and El Monte and West Covina budgets have been hit hard from the recession. Arcadia, which had the fourth highest pension costs of the 24 cities surveyed, spent $6.7 million last year for its 357 current employees and retirees. The city's general fund budget is $46 million.
In the election for Arcadia Unified School District board members, it seems incumbents Joann Steinmeier and Janet Chew are ahead. Steinmeier is seeking to extend her five terms on the school board.
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.
St. Baldrick's Foundation held its annual fundraising event at Matt Denny's Ale House. More than 70 volunteers got their family, friends and co-workers to give donations for them to shave their heads. Their baldness helps raise awareness of cancer and shows solidarity with the childhood cancer patients. Arcadia firefighter Drew Pryon is shown in photographs with children.