The city of Santa Clarita experienced a 15% reduction in general fund revenue since the recession due to decreases in sales tax and increases in unemployment and commercial vacancies. In response, the city reduced general fund spending by $12 million from FY 2007-2008 to the proposed budget for FY 2010-2011. Despite budget cuts, the city maintained its core values and services by having staff from all departments and levels make cuts, securing grants, implementing a hiring freeze to broaden employee skills, and cross training staff.

1. California Contract Cities
Association
Friday, May 14, 2010

3. Santa Clarita Since the Recession
General Fund History
•Lost 15% of General Fund 95.0
Revenue
90.0
•Sales Tax down by 23%
•Unemployment rates doubled (in millions)
85.0
Revenues
Expenditures
•Increase in office, retail and 80.0
industrial vacancies
75.0
•Reduced General Fund
spending by $12 million 70.0
FY 07-08 FY 08-09 FY 09-10 FY 10-11
(Adjusted) (Proposed)

4. 8 Best Financial Decisions
You Will Ever Make
1. “Decisions made during the good times are more
important than decisions made during the bad.”
2. Live below your means
3. Run a lean organization
4. When in doubt, contract out
5. Use conservative 5-year projections
6. Use one time money for one time expenditures
7. Diversify your revenue
8. Employ full cost recovery when setting fees

5. Most Business Friendly City

6. “We are All in this Together!”
• We didn’t compromise our core values:
– Creativity
– Teamwork
– Informed workforce
• Staff from all departments and levels helped
make cuts with minimal impact to services
• Team of staff secured $36.5 million in grants
• Hiring freeze broadened the skills of employees
and allowed for cross training