WHITTIER : Less Revenue Forces City to Consider Cuts

A drop in sales tax revenues and other sources of income this year could force the city to cut more than $900,000 from next year’s budget, officials said.

City department heads are reviewing their budgets and will suggest cutbacks within the next few weeks, City Controller Clara K. Wong said. The City Council is scheduled to review the proposed cuts April 21.

Whittier recorded a $520,000 decrease in income from sales taxes, in part because a General Motors auto leasing business closed, Wong said. In addition, officials had counted on collecting about $90,000 in taxes from two businesses that were later determined to be just outside the city.

Building permit fees declined $65,000, Wong said, because of a slowdown in construction projects.

Last year, officials faced a $980,000 deficit in a budget of nearly $4.7 million. Officials eliminated three vacant positions and imposed other spending cuts to help close the gap. Wong said the city also received more revenues from utility and property taxes.