West Covina’s deficit is expected to jump another $1.8 million to $3.9 million as a result of the declining economy and sales tax revenues. As a way to make up for some of the loss, the city is considering selling Prop A transportation funds at 75 cents to the dollar to West Hollywood. The sale will result in an increase in revenues of nearly $750,000.

Other ways the city could be acconting for additional revenues is by looking at personnel:

Staff will begin having informal discussions with all bargaining groups to examine possible employee concessions as an additional way to reduce the budget deficit. Current staff is already experiencing the impacts and stress of personnel reductions due to the additional workload and responsibilities resulting from the restructuring of City Hall. However, with personnel costs accounting for 83 percent of the General Fund Budget, it seems prudent to meet with the bargaining groups in an effort to preserve jobs, avoid layoffs, and minimize the impacts that further service reductions will have on the community.

Meantime, reserve levels continue to drop. In 1990, the available fund balance in the reserve pot was $40 million. In 2009-10, it is projected to dip to nearly $9 million.