The city’s finances looked bad in July
– but not this bad.
The city’s finances looked bad in July – but not this bad.
That’s when the Hollister City Council approved a budget that included operation of the newly renovated Veterans Memorial Building at a deficit of about $175,000.
Now, with the Council recently cutting its workforce and potentially facing a multi-million dollar deficit by next July, that sentimental sacrifice seems more painful than patriotic.
Taking over possession of the historic venue, the city and its Recreation Division oversees renting of the downtown building. And while its revenues are on track, and demand for the hall has met expectations, the building will likely lose the expected $175,000, according to Finance Director Barbara Mulholland.
At a recent meeting, Councilman Robert Scattini requested a report on the Veterans Building’s expenses. While he also asked about another potential budgetary thorn – overtime of the Police Department and the Fire Department.
Scattini said the city can’t afford to continue operating the downtown building with such a significant deficit. Maybe, he said, the expensive renovation and supervision of the building was the “wrong timing.”
“It’s early yet,” Scattini said of the fiscal year. “But I think we’ll break our backs if we do (continue the trend). I don’t have an answer at this time, but I also know enough to say we can’t take that kind of a hit.”
Recreation Services Manager Robert Ornelas, who oversees the building’s rentals, expressed optimism Monday. With the $4.4 million renovation completed in June, the city got a late start on bookings during this fiscal year, he said.
So far, most weekends have been booked, primarily for weddings and quinceaneras, Ornelas said. Every Saturday, with a couple exceptions, is booked for the remainder of 2004, which Shaddox called “good news.” And the division has already begun scheduling weekend events for 2005.
“The building is being utilized to its potential,” Ornelas said.
Next year’s revenues, he said, will paint the “true picture.” Plus, the city will strive to attract more users during the week and evenings.
But one reason for the deficit, and a question Council members are sure to face come summer time, is the relatively inexpensive fee structure for people renting the hall.
Aside from rental rates, City Manager Dale Shaddox said one other consideration during budget talks this May and June could be closing the building for several days a week.
Ornelas mentioned the possibility of requiring that users provide services for setup and takedown of equipment. One full-time maintenance worker currently provides those services – as well as clean-up duties after events – for the building’s users, he said.
Shaddox said he expects city staff to report back to the Council on the Veterans Building and public safety overtime “fairly quick.”
On Monday, Mulholland confirmed Scattini had good reason for concern about the overtime issue. The Fire Department had already reached its $100,000 budgeted for overtime by December, and is headed toward exceeding it by about $75,000, she said.
