Memorandum – June 19, 2009

City of Willits

MEMORANDUM

Date:     June 19, 2009
To:        Honorable Mayor and City Council
From:     Paul Cayler, City Manager
Subject: Administrative Progress Report

The following developments may be of interest to you and the community-at-large.    Please contact me at (707) 459-4601, if you have any questions.

SKATE PARK

A check was received from the State of California Department of Parks and Recreation equaling $247,000 for the grant related to the Skate Park project.  This is good news, and has very positive impact on the City’s budget outlook.

KIDS CLUB

The Kids Club construction project is back underway.  This project was suspended in January 2009 due to the State of California freezing grant disbursements caused by the budget crisis.  The State made a disbursement payment to the City of Willits of approximately $360,000.  Based on this action, I lifted the project suspension.  Work to complete the project began on Monday, June 15, 2009.

BUDGET

Much of my time along with City Finance Director Joanne Cavallari has been dedicated to work preparing the Fiscal Year 2009-2010 Budget.  A proposed Final Budget will be presented to the City Council on Wednesday, June 24, 2009.  Due to the general economic slowdown, this has been a very challenging document to prepare.  Also, there will continue to be many complex unknown factors that will be up in the air, such as what will be the role of local government in the plan to reconcile the State’s budget, and what will happen to the City’s greatest General Fund revenue source:  Sales Tax.  The City’s budget will have to be returned to and adjusted through out the year as events play themselves out.   I want to express my deepest gratitude to City employees, the City Council members and the public that have participated in the many long meetings and budget planning sessions.  These are very difficult times that are demanding great sacrifice and causing sleepless nights.

SALES TAX

Related to the City Budget as discussed above, the preliminary sales tax data for the first quarter of 2009 has been received.  The information is indicating that there was a 13.8% sales tax decrease in Willits when comparing the 1st quarter of 2008.  On the whole, the City of Willits experienced the smallest decrease for jurisdictions in the County:  Mendocino County decreased 22.9%, the City of Ukiah decreased 15.1%, and the City of Fort Bragg decreased 14.7%.  When comparing the total sales tax collected in the most recent four quarters, Willits has experienced a 5.8% decrease.

LAKE LEVELS

As of June 16, 2009, the total water storage capacity in Morris and Centennial Reservoirs is 1,236 acre feet.  This is a very welcome development.  There is no water emergency in Willits right now.  Water storage is approximately 230 acre feet greater than last year at the same time.  The next important water capacity trigger point for declaring a potential Phase One Water Emergency is August 1st, wherein there must be greater than 830 acre feet in storage.  At this time with the dry season upon us, it appears that the downward water storage trend line will be greater the water emergency trigger point.

SWIMMING POOL IS OPEN

The Swimming Pool is open for business.  Open swim is Monday through Saturday from 1:00pm to 4:30pm.  Open swim admission is $3.50.  A 20-swim pass is available for $62.00.  Persons interested in swim lessons, adult lap swim, pool parties and water aerobics should contact the Pool Office at 459-5778.

PLEDGE FOR THE BALL FIELDS

A pledge of $1,000 has been received from the Mendocino County Sheriff’s Activity League (MCSAL) for the Ball Fields project.  A BIG thanks to MCSAL Director Tom Allman and MCSAL President Mike Tobin.