While staring down an estimated $3.6 million deficit for its 2019-21 fiscal years, the city of Lompoc is revisiting a conversation similar to one that City Council and city staff had two years ago.
When Lompoc began drafting its budget for the 2017-19 fiscal years, then City Manager Patrick Wiemiller, who left his position in January 2018, presented City Council with a budget that included three tax measures to generate additional revenue. The City Council at the time—which included most of the current members—rejected those increases and instead found various places to trim the budget to balance the city’s revenues and expenditures.
At the time, Mayor Bob Lingl, who didn’t run for re-election in 2018, said these measures would only temporarily balance the budget, and that the city would need to address the root of its issues during the next budget cycle. Primarily, these issues include a lack of revenue and the cost of city workers’ pensions.
“We’re going to get these things addressed for this year, next year, and we’re going to be right back in the same spot as we are [in] two years in the next budget,” Lingl said during a Sept. 9, 2017, meeting.
Almost two years later, during a 2019-21 budget workshop meeting on April 17, Lompoc City Manager Jim Throop—who assumed his role nine months ago—presented Lompoc City Council with a budget that includes an 8.7 percent reduction in funding across each city department to reach a balanced budget where city expenditures don’t exceed its revenue. The reductions presented included layoffs for numerous firefighters and police officers among other city staff and services.
Lompoc Police Chief Joe Mariani, who took over as head of the department in late February, said an 8.7 percent cut from his department’s budget would mean the loss of six police officers from the existing 44 positions. Meanwhile, Lompoc Fire Chief Gerald Kuras said the same reduction from his department would result in the termination of three firefighters and cuts to numerous operations, such as public education programs.
Council members pushed back on instituting an 8.7 percent cut across all city departments, as well as the idea of reducing the budget and staff of the public safety departments.
“All we saw [in the budget presentation] were cuts in police, cuts in fire, cuts in library, and that’s not what the council is saying … we want,” City Councilmember Gilda Cordova said. “So what I think the council is asking is, ‘Show us also what are the other ways that we can make some cuts. What are the responsible ways?’”
An alternative to these drastic cuts, Throop said, would be to hold an election for a 1 percent sales tax increase to generate additional revenue if voters approve the measure. The existing sales tax rate in Lompoc is 7.75 percent; however, the city only receives 1 percent of this rate, with the majority going to the state and a portion going to Santa Barbara County.
The city of Santa Maria held a similar election in November 2018 to address some of its budgetary shortfalls. Santa Maria voters approved a 1 percent increase to the city’s Measure U tax—which first passed in 2012—with a 74 percent majority and raised the city’s rate to 8.75 percent. Funds generated through this tax are dedicated to public safety improvements.
According to a staff report from a Santa Maria City Council meeting on March 5, this sales tax increase is projected to generate $18 million in revenue for the city’s 2019-20 fiscal year. The report proposes using the majority of this revenue to hire additional police officers and firefighters and upgrading equipment for both departments.
A 1 percent sales tax increase in Lompoc would not generate as much revenue—primarily because the city has less than half the population of Santa Maria. However, according to a presentation from Lompoc Management Services Director Dean Albro, the increase is projected to generate $4.9 million in revenue per year, while costing the average family in Lompoc about $123 annually.
Following staff presentations, council provided feedback on the tax increase proposal. Most council members did not support building a budget based on a tax increase that may or may not happen.
Additionally, City Councilmember Victor Vega said the sales tax increase would create an additional burden on lower-income families living in Lompoc. He also expressed concern regarding the cost of holding a sales tax election—which city staff estimates will cost $150,000—because the city wouldn’t recoup that money if the measure fails.
After a public comment period where many residents spoke in favor of the sales tax increase, City Councilmember Jim Mosby said he’s concerned that revenue generated from a possible tax increase could be spent poorly.
“I think it needs to be understood that we have brought an increasing amount of new revenue to the general fund over the last several years, and that money is gone,” Mosby said. “And it wasn’t [our pension obligations] that ate it up—[that] was a part of it—but a lot of [it] was ate up on other things [such as] creating new departments, new divisions … and not being disciplined.”
At the end of the meeting, Mayor Jenelle Osborne directed Throop and city staff to address the concerns raised by council and prepare a new budget to present at a future meeting, a proposal that does not include significant cuts to public safety or a sales tax increase.
Staff Writer Zac Ezzone can be reached at zezzone@santamariasun.com.
This article appears in Apr 25 – May 2, 2019.