Press Release

Austere Two-year Budget Includes Employee and Program Cutbacks

Posted June 18, 2009

Monrovia’s City Council has adopted a balanced but austere two-year budget that cuts employees and trims programs in the face of continued revenue losses due to the national economic downturn.

The Council, in a unanimous vote Tuesday, June 16, closed a potential $2.6 million gap in the budget caused primarily by decreasing sales tax revenues.

As many as 22 current City jobs are being eliminated, including a round of layoffs this month that cut four positions on top of the 10 spots that were either eliminated or not filled during the past two years. In addition, 12 current employees are taking an early-retirement buyout between now and October. Their positions will not be filled. Other cuts will come through attrition, and some currently open spots will not be filled.

The City is still negotiating with employee associations, seeking changes in labor contracts that will provide additional savings and complete the budget balancing. The negotiations center on eliminating merit raises and performance bonuses for at least the next year to ward off further personnel cuts.

The new fiscal plans take effect July 1. Negotiations with employee groups are expected to be completed before that date.

Mayor Mary Ann Lutz said that, “We’ve had to make some very hard choices, but the result is that Monrovia remains strong, it’s finances are secure and we can continue to move forward. These are difficult times, but with careful management, we’ll weather them just fine.”

She said that, “The budget has been balanced through personnel cuts and cost savings, the freezing maintenance and operations budgets at previous years’ levels, the deferring of capital expenses wherever possible, and few if any new programs.:

The new budget, which covers fiscal years 2009-2010 and 2010-2011, calls for expenditures of about $60 million each year, about half of that involving the General Fund, which is financed through sales taxes,

property taxes and charges for services.

Cutting back on personnel, explained City Manager Scott Ochoa, will mean some decline in City services – a longer turnaround time on engineering plan checks and longer periods between trimming of parkway trees, for instance.

Other anticipated consequences of the cutbacks include a scaling back of community events such as the Fourth of July fireworks show, which has been cancelled this year; a cutback in the number of summer concerts; elimination of the Food, Wine and Jazz Festival; the Canyon Park Haunted Hike and the Halloween Home Decorating Contest.

Passport services in the City Clerk’s Office will be affected, as will the turnaround time on public records requests. The Fire Department’s Community Emergency Response Team will be limited to just two classes. The Library will reduce Children’s Story Times to just one per age group.

City Departments are also being reorganized in the face of personnel and funding cuts:

• Public Works is consolidating it’s Operations Division into Infrastructure Maintenance and Engineering Divisions.

• Community Services has consolidated mid-management positions in its Recreation and Library Divisions.

• Community Development will be using consultants and contractors to make up for the loss of personnel.

• The Administration Department is downsizing Records Management.

Although there are some new programs and initiatives called for in the budget, few of the dollars to pay for those will come from the City’s General Fund. Nearly all of those new projects will be funded by grant monies and other restricted dollars already set aside and allocated.

Press Release

City Facing Budget Shortfall; Begins Closing Income-Expense Gap

Posted June 2, 2009

Monrovia, like every city in California, is facing a serious budget shortfall over the next two years and is preparing now to close the gap between income and expenditures.

The City Council officially received the numbers during a comprehensive study session Tuesday night that was carried live on Monrovia cable stations and the Internet.

“Now is the time for the hard decisions we’ve been preparing for,” said City Manager Scott Ochoa. “With responsible management of our more limited resources, we’ll weather this downturn and maintain our high quality of service.”

“Monrovia is in a solid financial position, but it will only remain so if we are willing to make the tough  decisions today,” he said.

Ochoa and Administrative Services Director Mark Alvarado told the Council Tuesday that dropping sales tax revenues, declining property tax funds and a potential State raid on local monies – along with rising costs – are combining to create sizeable holes in the projected 2009-2010 and 2010-2011 fiscal years’ budgets.

Monrovia adopts two-year budgets every other year, with adjustments made every six months. Tuesday’s study session was the first of two this month prior to adoption of a new two-year budget before July 1. A second study session is scheduled for Monday, June 8, at 5:30 p.m. in the Council Chambers at City Hall, 415 S. Ivy Avenue.

The budget is scheduled for adoption at the Council’s June 16 meeting.

Alvarado reported Tuesday that sales tax revenues are down more than 20%, a loss of $1.5 million in the next two years; $900,000 of it in 2009-2010 alone.

Also:

• Slow sales among auto dealers are expected to cost the City $500,000 in lost sales tax revenue over the next two years, and the recent closings of Mervyn’s, Circuit City and Expo will result in another $300,000 loss during that same period.
• Revenue from building construction is expected to drop another $150,000, a 30% decline, with yet another loss of $225,000 from service station sales.
• While property tax revenues have been growing at 6%, the increase is expected to drop by two-thirds next year to 2% due to property reassessments, a potential loss of $260,000 from the current revenue flow.
• Electricity costs – impacting street lights and water pumping – have increased $125,000 over the last three years (a 45% hike) and new Edison rate increases are expected this year.
• A conservative five-year forecast shows revenues increasing by just 8.5% but expenditures going up 10.2%, creating a structural deficit of $773,449 if action is not taken.
• Adding insult to injury, the State, in an effort to balance its own budget, is now poised to take another $850,000 from Monrovia’s property tax revenues next year. If it does, it will by law need to repay that amount within three years, with interest. The State may also withhold another $407,000 that the City gets annually in Proposition 42 transportation funds used to resurface streets.

Alvarado said City Staff is proposing a number of moves to close the growing gap. Among the items placed on the table for Council consideration during Tuesday’s session were:

• A combination of early retirements, hiring freezes, attrition, wage and benefit concessions and layoffs adding up to $1.4 million less in personnel costs in the 2009-2010 fiscal year. City staffing has already been reduced by 10 full time positions in the past two years.
• Flattening of all department operations budgets following cuts in the past two years totaling more than 4%. That, combined with personnel losses, could result in service and program cutbacks still to be  determined.
• A reduction in contributions to the City’s reserves for facility improvements and economic uncertainties.
• A hold on all street maintenance projects funded by Proposition 42.
• A new Emergency Response and Mitigation Fee for the Fire Department; new facility rental and  recreation program fees; and increased fines for parking violations.

Not all of Alvarado’s news was bad. Some restricted funding from other sources is still available for already-approved projects.

• Proposition C and federal stimulus funds will enable the installation of new traffic signals at Myrtle Avenue and Huntington Drive and Myrtle and Chestnut Avenues.
• Measure R funds are expected to bring as much as $400,000 annually to local transportation projects beginning in January, 2010.
• Funds from Foothill Transit and the MTA will enable Station Square street design improvements.
• Federal transportation, Proposition C and economic development funds will enable the historic train depot renovation and the covering of the flood control channel at Huntington and Fifth Avenue.

He also said that the Monrovia Redevelopment Agency will meet all of its debt service obligations and have balanced budgets in both the 2009-2010 and 2010-2011 fiscal years.

Mayor Mary Ann Lutz said, “Now that we know exactly where we’re heading, we can work through this difficult period.”

“Tough times call for tough decisions,” the Mayor said. “We have a strong and stable community and we’re financially well positioned to make it through the downturn. Better times will come, and we’re working hard to make that sooner rather than later.”

Press Release

Monrovia Library Opens to Public May 16; Gala Event Planned

Posted April 27, 2009

Monrovia’s new 28,0000-square-foot Public Library will open for public use at 10 a.m. on Saturday, May 16. It will be the highlighted event of this year’s Monrovia Day celebration, honoring the 123^rd anniversary of the city’s founding.

The day-long opening gala will feature a 10 a.m. ribbon cutting ceremony, officially opening the doors to the public. All of the Library’s collection of books, tapes, CDs, DVDs and periodicals will be available at the new site for public use, along with new public computers. The Library staff will be on duty and available until the 5 p.m. closing time on the 16^th.

At 10:30 a.m. opening day, the Library’s Community Room will be inaugurated with a spelling bee for local school children. At 1 p.m., in the same room, City Historian Steve Baker will lecture on the history of the Library.

Later that day, at 3:30 p., author Ray Bradbury will deliver the day’s keynote address in the Community Room.

Built for less than $16 million, the new Library was funded by a bond issue approved by Monrovia voters in March, 2007. The project came in $280,000 under budget, with that amount being returned to taxpayers by way of a lower tax bill later this year.

The new building was dedicated in a public ceremony April 4 and subsequently toured by nearly 2,000 people. It is twice the size of the facility it replaced and is Silver LEED certified as an environmentally sensitive and sustainable building.

In addition to traditional check-out and reference services, the Library also provides programs for children, literacy tutoring for children and adults and new programs making use of expanded technology, a teen advisory council and the new facilities bookstore.

The project also included a re-make of Library Park, with additions to the park still to come – a public fountain will be installed an unveiled in a dedication ceremony this summer, as will a new war memorial. A new children’s play area is also being installed behind the Library in the western portion of the park, to open later this spring.

Press Release

Block Party Saturday Kicks Off MAP’s Third Year

Posted April 21, 2009

A huge block party kicking off the third year of the Monrovia Area Partnership (MAP) program is set for Saturday, April 25.

The party is set for 11 a.m.-2 p.m. in the 1200 block of Sherman Avenue, between Cypress and Fig Avenues.

Free food, music, raffles and a kids’ zone will highlight the event, along with information booths, a look at the new Habitat for Humanity homes being built on that street, and chances to meet newly-elected City officials.

Honored at the event will be a group of MAP Area residents who recently graduated from a special Leadership Academy class and who have trained to better serve their neighborhoods.

Monrovia’s Old Town Trolley will shuttle participants to the site from throughout the MAP neighborhoods, from Colorado Boulevard on the north to Los Angeles Street on the south, between Myrtle and Shamrock Avenues.

MAP has been working in Monrovia’s neighborhoods for the past two years, bringing home improvement grants, community organizing, improved public infrastructure and recreation and literacy services   to low-income and blighted areas.

The program has won several regional and national awards for its innovation and effective implementation.

Press Release

Open City Hall to Feature Passport Services

Posted April 21, 2009

Monrovia City Hall’s passport service desk will be open for business on May 9, as part of the twice-yearly Saturday Open City Hall.

Monrovians may apply for new or renewed passports that day from 11 a.m. to 2 p.m.  Passport photos can also be taken during that time. City Hall is located at 415 S. Ivy Avenue, between Lemon and Lime Avenues in Old Town.

Other City Hall services will be available that day as well, but will be located next to City Hall at the Headquarters Fire Station as part of the annual Fire Service Day Open House which also takes place on May 9. The fire station is around the corner from City Hall on Lemon Avenue.

The annual Fire Service Day opens at 7 a.m. with a pancake breakfast and features displays, demonstrations and an “obstacle course” for youngsters. The Open :House will conclude at 11 a.m.

The popular event draws hundreds of Monrovians each year.

Press Release

Community Wildfire Forum Scheduled May 11

Posted April 21, 2009

The Monrovia Fie Department will be hosting a public Community Wildfire Forum in City Hall’s  Council Chambers on Monday, May 11, beginning at 6 p.m. The forum will also be available live on the internet.

Experts will be available from State and Federal agencies who can answer homeowners’ questions concerning  sustainable landscaping, building construction and retro-fitting a home to better prepare for a wildfire.

A live cablecast of the forum will be carried online by Monrovia’s public access television provider, Community Media of the Foothills, at www.kgemtv.com.

For further information on the meeting, call the Monrovia Fire Department at  (626) 256-8181.

Press Release

Monrovia Wins L.A. County Green Leadership Award

Posted April 13, 2009

The City of Monrovia has won a Green Leadership Award from the County of Los Angeles.

Monrovia was nominated for the award by the San Gabriel Valley Council of Governments and won in the Public Agencies category. The award recognizes Monrovia’s 21 Environmental Accords, adopted by the City Council in 2007, for their positive impact on the environment, sustainability and transferability to other agencies.

The Accords are a list of actions that the City is taking over the next several years in the areas of energy usage, water usage, waste reduction and green building techniques to lower the community’s impact on the environment.

The award is to be presented to the City on April 21 by the County of Los Angeles Board of Supervisors.

Press Release

T Phillips to Locate in Old Town, Filling Long Vacant Building

Posted April 8, 2009

A long-vacant Old Town Monrovia building is about to become a new pub and restaurant.

T Phillips, a bar and grill with locations in Glendora and La Verne, has signed a Disposition and Development Agreement with the Monrovia Redevelopment Agency to buy and occupy the building at 601 S. Myrtle Avenue, at the southwest corner of Colorado Boulevard.

The agreement was approved by the Monrovia City Council Tuesday, April 7.

The building has been vacant since the mid-1990s when it was home to a learning center for three years. Prior to that it had been vacant since the Social Security Administration closed its offices there in the 1970s. Several restaurants and pubs, a fresh fish market and most recently Vroman’s Book Store of Pasadena had planned to occupy the building, but none of the deals ever concluded.

Vroman’s abandoned announced plans to move to the Myrtle Avenue site late last year because of the economic downturn.

The building was acquired by the Monrovia Redevelopment Agency in September, 2006 in a move to take it off the private market after so many failed attempts to selling or leasing it. The building had deteriorated over the years and was having a negative impact on the Old Town district.

With Agency investment, the buildings was renovated and underwent extensive exterior rehabilitation.

The Agency had two objectives in buying, repairing and ultimately selling the property – to replace a visually blighted structure with an attractive centerpiece for Old Town, and to attract a business use that would anchor the south end of Myrtle, much as the Krikorian Premiere Theatre has down for the north end of Old Town’s main street.

Under the terms of the agreement, T Phillips will buy the site from the Agency for $1.5 million. The Agency will fund the purchase price, which will be repaid in full, with interest, no later than seven years from the sale date.

Although T Phillips is paying fair market value for the site, the Agency is making substantial contributions toward interior improvements – about $250,000 worth. In return, T Phillips will sign an operating covenant that will require that the site remain a restaurant for at least 10 years.

Once in operation, T Phillips is expected to make a significantly positive impact on Old Town, increasing foot traffic, especially during weekend and evening hours.