Arroyo Grande’s $3.5 million revenue shortfall

May 27, 2019

Mayor Caren Ray Russom

The Arroyo Grande City Council is scheduled to discuss a $3.5 million annual shortfall for infrastructure upkeep on Tuesday, according to a staff report. [Cal Coast Times]

In his staff report, City Manager Jim Bergman says the city is short about $2.4 million needed to maintain drainage facilities, parks, and government buildings. In addition, the city is needs an additional $1.16 million to pay for road and parking lot maintenance.

In addition to the $3.5 shortfall, future debt service for the Brisco Interchange project will reduce available Measure O funding which primarily supports these capital improvement projects.

In order to move forward with the $22 million Brisco Road roundabout project, the city will have to sell bonds.

In his staff report, Bergman analyzes revenue from property tax, sales tax, business license fees and transient occupancy tax.

“Economic development is an ongoing discussion that will mainly influence property tax, sales tax, and Transient Occupancy Tax by increasing taxable sales and not by raising the tax rate,” Bergman said in his staff report.

Bergman also provides an indication of the relative amounts of hypothetical development the city would need to fund the $3.5 million yearly shortfall which includes 10 new car dealerships, or 12 new 100-room hotels or four new shopping centers that perform as well as the Five Cities Center.

Bergman’s report does not include cutting costs or further discussion of eliminating the city’s $2.5 million contribution to the Five Cities Fire Authority.


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Jorge Estrada

The reason we routinely place a lien on our successors is because we like to pay more taxes for some to retire early. It’s like supporting LOTTO for education, Marijuana to balance a budget and Taxes for a benefit you may get.


Fleet

Arroyo Grande will do what they normally do and spend tens of thousands of dollars to hire a consultant


AGDUDE

You Folks Wanted her.. you Got her , Teacher’s are not Bright folks..


HarryMalone

Too bad the city spent so much chasing Patty Welsh’s (the convicted felon) allegations against Mayor Hill. Nearly $100,000 on a witch hunt that produced nothing.


kayaknut

But at least we will have the “Ferrara/Ray roundabout”, they have been planning that for years.


Noodly Appendages

    Bergman also provides an indication of the relative amounts of hypothetical development the city would need to fund the $3.5 million yearly shortfall which includes 10 new car dealerships, or 12 new 100-room hotels or four new shopping centers that perform as well as the Five Cities Center.

That ‘hypothetical’ development is THE OPPOSITE of what most AG residents want. Think about it. They’re saying ” We can continue to overspend if we just pack em in to get more taxPAYERS. That way, the people from here don’t get a tax increase they notice, and we can continue to blow thru this wad of money we were ALREADY given.

Please, this whole El Campo overpass nonsense is just part of the same push to develop south Arroyo Grande.


Mjd

Folks,


We are only now beginning to see Caren Ray Rossum’s failed leadership on full display. She ran a fraudulent campaign, used criminal campaign staffers to trash her opponent, and made promises she does not intend to keep.


As a ultra-liberal progressive Democrat, I’m sure that Caren Ray Rossum will see this deficit issue as a chance to raise taxes on the middle class families she claims to represent, and I’ve never met a liberal who didn’t support high taxes and the long arm of government intruding in our lives.


Arroyo Grande will be better off after Caren Ray Rossum leaves office, and the problem with ex -Mayor Jim Hill’s reelection campaign was that he was not willing to reach as low as Ray Rossum was willing to go. Sad.


Progressivism Stinks.


horse_soldier

This will be a real test of Ray’s leadership skills.

Big promises and no money.


LameCommenter

Wait, “”Ray’s leadership skills”? Isn’t that an oxymoron?


Rich in MB

Lets just give endless staff and city employees raises and then raise taxes to cover the shortfall…..hey it works in the city of SLO…


shelworth

Or follow PG&E’s lead, “first the bad news; we’re bankrupt, the good news; everybody gets a bonus!”.


MysticOne

Also from PG&E: “And to pay for those bonuses and fines from fires we caused we will bribe Sacramento into allowing insane rate hikes so that customers will foot the bill for it all!”.