Budget revision defended

CITY HALL — City Council members approached Glendale’s financial outlook with optimism Tuesday after approving midyear budget revisions to close an $8.4-million gap before July.

Faced with unrelenting criticism over what City Hall activists contend are disproportionate city employee salaries, the City Council defended Glendale’s financial position Tuesday night as steady, albeit somewhat weakened by the recession.

“Believe me, the sun is going to rise tomorrow, in spite of everything you hear,” said Councilman Frank Quintero.

The $5.43-million budget revision, which factors in falling city revenues, a hiring freeze and the elimination of 23 vacant positions, and other cost-cutting measures are expected to close the $8.4-million budget gap for this fiscal year, city officials said.

But the budget shoring is not expected to stop as City Hall turns its attention to fiscal year 2009-10, which starts July 1.

As the recession and unemployment figures continue to worsen, many of the deflated revenue projections could very well last into next year, city officials warned.

Projections on sales-tax revenue were cut back $3 million as part of the budget revision, although third-quarter figures, which will include the holiday spending season, have yet to be released.

Still, the hamstrung construction industry continues to constrict city revenues, which were down a combined $2.54 million for services that include building permits and plan checks.

Given the uncertainty in the market, City Manager Jim Starbird said he considered the budget revision a stopgap measure to ensure “the city lives within its means.”

“My anticipation is that this downturn is going to be long and wide and deep, and we’re going to have to make some structural changes,” he said.

What form those changes will take hasn’t been fully addressed because the City Council has yet to hold budget hearings for next fiscal year. But finance officials have said repeatedly that everything will be on the table, including unpaid work furloughs and modified hours of operation.

An existing hiring freeze will likely remain in place, but so far city officials have steered clear of the possibility of layoffs, which have hit other cities in the Southland.

Some city activists have called for layoffs, or at the very least across-the-board pay cuts for city employees.