Culver City is facing a current-year budget shortfall of $500,000 and a projected shortfall of $4 million in 2009-10.
This was the crux of a sobering financial report delivered to the City Council last Monday night.
The structural deficit that City Manager Jerry Fulwood has been working to address since the Perfect Storm report he delivered almost three years ago, is now a stark reality.
The current economic correction has expedited and intensified the negative effects of that structural deficit.
Under the leadership of the City Manager, a menu of options was presented to City Council this week that would allow the city to weather the next two years.
However, sacrifices will need to be made.
One-time fixes, such as further deferring capital improvements and maintenance projects, fund transfers, freezing positions and further decreases in operations and maintenance costs, have been recommended to the City Council to avoid drastic service reductions over the next two years.
Unfortunately, these actions will only create short-term savings to carry us through.
Long-term solutions to increase revenues and reduce expenditures will need to be implemented to ensure the fiscal health of the city once the economy stabilizes.
Without these solutions, the city will most likely be looking at significant personnel and service reductions beginning in fiscal 2011-12.
Jeff Muir is the Chief Financial Office for the city of Culver City. He may be contacted at jeff.muir@culvercity.org
