The Beach Reporter - Council hears grim budget outlook

by Jennifer Evans

In reviewing El Segundo’s past and future financial status, El Segundo Director of Finance Deborah Cullen indicated that this year doesn’t look any brighter than last. Cullen, who presented the El Segundo City Council with the 2008-09 year-end results as well as this year’s first-quarter review during the Feb. 16 City Council meeting, started the otherwise grim presentation listing the “challenges and limitations” facing the city.

“There is still double-digit unemployment coupled with low consumer spending,” Cullen noted. “Low investment returns also affect the city’s budget. With no new revenue sources, the city manager is looking at how to control spending.”

Cullen further explained that there are still cost drivers in place, which will continue to affect the city’s finances, such as escalating employee retirement contributions driven by high salaries. “This year, the El Segundo City Council has dedicated $4.5 million for retired employees to cover retirement benefits,” Cullen said, adding that last year it was $4.3 million.

Major revenue sources for the city include property tax, sales tax and electric utility users tax. Police and fire continue to be the highest expenditure to the city, taking up 60 percent of the city’s general fund.

“We ended the 2008-09 fiscal year with a $2.8 million deficit,” Cullen said during her report.

Read the entire article at:
http://www.tbrnews.com/articles/2010/02/24/el_segundo_news/news19.txt

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