Fri10242014

News

LA postpones $1 million in projects

The Los Altos City Council plans to reduce $1 million worth of projects from its current capital projects plan due to an anticipated $397,000 shortfall in the city's budget.

A dip in the economy and accelerated funding for the city-owned gymnasium on the Egan Intermediate School campus will affect the scope of capital projects that can be funded, said Assistant City Manager Starla Jerome-Robinson.

The city plans to make up the anticipated shortfall in the operational budget by transferring less of the Utility Users Tax to the Capital Projects Fund and deferring the approval of 1.5 new maintenance worker positions previously planned for the next year. The city collects about $1.7 million annually from the tax, Jerome-Robinson said.

"The city has weathered the economic downturn better than other local cities," she said. "We're not recommending freezing open positions or other severe measures.

Our guiding principle for city operations has been to provide a plan in which recurring general fund revenues exceed ongoing expenses."

Part of the budget adjustments included eliminating or delaying more than $1 million in projects approved from prior years, transferring $494,0000 from the city's Contract Reserve fund to the Capital Projects fund to provide the funding needed for the construction of Egan gym this year.

In addition, staff recommended delaying or eliminating $1.7 million in projects previously scheduled for the 2002-03 fiscal year, Jerome-Robinson said.

Most of the project cuts include a reduction or delay in planned city facility upgrades, such as the refurbishing of Hillview Community Center, city hall and the police department.

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