News

Actions

Oil industry impacting new city budget

Posted at 11:23 PM, May 04, 2016
and last updated 2016-05-05 02:23:35-04

It's another penny-pinching year for the local government. On Tuesday, the county announced it would double the size of proposed budget cuts which could include dozens of layoffs.

On Wednesday night, the city of Bakersfield also considered cutting costs. The drop in oil prices is once again taking a toll on the city.

"That means that there will be less resources for certain special projects. You may notice through the project intervals for maintenance on certain items, streetscapes, parks, that nature of activity," said Chris Huot, who works for the city manager's office

During a overview presentation for next year's budget, city staff announced jobs in the oil industry have dropped by 21% since last March.

That's having a trickle down effect on sales tax revenue, which makes up about 34% of the city's budget.

"We see declines in stuff like, car sales, which is down, as well as retail-type of activity," said Huot.

Because of those layoffs, people are willing to spend less on goods and services.

"It has resulted in reductions of approximately $3.5 million to the general fund. We are not anticipating any growth for next year."

The city is estimating this year's budget to be more than $461 million - almost 20% less than last year's $570 million.

In order to save money, the city will not be filling in 13 vacant positions - plus two civilian positions within the police department that will become vacant mid-year.

"The net results, the results is a saving to the general fund of approximately a million dollars for the 12 months."

There will be a public hearing on June 8th and the budget is expected to be adopted on June 29th.

--

Like Grecia Aguilar on Facebook: www.facebook.com/GreciaAguilar23ABC

Follow Grecia Aguilar on Twitter: www.twitter.com/GreciaAguilarTV