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Revenues Drop, City Cuts Budget

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Merchants seek help from city in promoting Ojai as tourism mecca

By Sondra Murphy
It is no secret the local economy is not immune to the national downturn, especially in Ojai’s core industry of tourism.

On Tuesday, city manager Jere Kersnar offered preliminary figures for the first quarterly budget review to the Ojai City Council.

The report began ominously, as the city sought council recommendation to begin preparation of a budget control plan to be ready by the midyear budget review, if not sooner.

Sept. 30 marked the end of the first quarter, giving a limited view of city finances, since not all revenue sources are received and expenditure patterns are unclear. The 2009-2010 fiscal year general fund budget is $7.9 million.

Kersnar called the primary sources of revenues for the city “the big three,” which are property, sales and transient occupancy taxes. Property taxes are routinely received in the second and fourth quarters and Kersnar said early indications are that the budgetary projection will hold.

Sales tax revenues were down in the first quarter, bringing in $66,578.24 and causing Kersnar to predict those revenues will be about $250,000 short of the full year estimate.

TOT was the main concern, which yielded $447,398.24 in the first quarter. The initial analysis projects a full year shortfall of more than $550,000 from the projected $2 million. No unusual patterns in the collections of other general fund revenues were evident.

The analysis is based on comparisons to the city’s 2008-2009 first quarter, which Kersnar reported were strong and said shortfalls may well be overstated. “That is, the revenues are likely to perform better by the end of the year than the initial projections would indicate. Nonetheless, the projections are of obvious concern.”

Councilwoman Betsy Clapp was troubled by the time line. “I’m reluctant to wait until February to do something.” Kersnar said other revenues, such as property taxes, would be known in December, helping the city implement a budget control plan as soon as January.
Earlier in the meeting, several merchants addressed the council asking for them to schedule a discussion about the city doing more to help market Ojai as a tourist destination. Assumed in the requests was the ability for the city to fund such a marketing plan. Geoff Wells particularly targeted “day trippers” who stay in other communities and stop by Ojai for a few hours. He said a marketing plan to lure “quality visitors” to the city was needed.
“Promoting Ojai in a proactive manner is something that must be done, and must be done soon,” said Scott Eicher, Ojai Valley Chamber of Commerce CEO. “Tourism is our primary revenue stream and we need to keep it flowing. It’s practically stopped right now.” He suggested the city consider funding a visitors’ bureau again or invest in hiring a publicist.
Councilwoman Carol Smith viewed the competition from surrounding area hotels as challenging to overcome. “When the (Ojai Valley) Inn went into five-star range, they fell out of range of the couple in Westlake who want a three-day getaway,” said Smith. “When the inn was not so upscale, they could attract people who aren’t movie stars.”
Council members decided an informal workshop setting would facilitate a more effective dialogue between merchants and the city. Smith urged people to bring hard client and customer data to the discussion.
The Merchant Workshop is scheduled for Dec. 1 at 6 p.m. in the council chambers. The next City Council meeting is scheduled for Dec. 8 at 7:30 p.m.

Written by admin

November 17th, 2009 at 5:05 pm

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32 Responses to 'Revenues Drop, City Cuts Budget'

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  1. Geoff Wells and Scott Eicher have great points but, weren’t these points made by David Lawrence like a year or more ago before it even got to this point? If the town’s biggest revenues come from tourists you have to continue to cater to them. People don’t bite the hand that feeds you, right?

    Anon

    17 Nov 09 at 6:28 pm

  2. Gettin’ closer to the time when we’ll have to start doing those jobs that “white people won’t do”.

    And if we do them, and the employers pay us legally, and report the sales and pay the sales taxes … might see a jump in revenue for the city.

    Maybe I’m just dreaming …

    White Tribe Activist

    17 Nov 09 at 8:49 pm

  3. White Trash, always the dreanmer.

    Wally George

    18 Nov 09 at 9:01 am

  4. This where Dan went out and Jere came in. No money. It’s time for another change, the Quilt didn’t work Time for a new City Manager. The sooner the better. They shouldn’t have spent that $300,000 on phones,copiers and software.Now we need it.More potholes than ever, more closed store fronts, Skatepark still, after 4 years not close to starting and a hugh give away to the School in the form of Bathrooms, Drinking fountains, Park benches and Sunshades for the School.Now the City Council wants to give the City manager a Raise for his work. Did you get one?

    Anonymous

    18 Nov 09 at 9:10 am

  5. I’d hate to see the end result of Ojai becoming a tourist first attraction. I saw the end result of that in Santa Barbara.

    I remember in the 80′s when then Mayor Lodge of Santa Barbara let the area know that “tourism” is good for Santa Barbara. She said it would be great for local businesses. Ha Ha there are now 2 yep I said it 2 local businesses on State St now; everything else is corporate.

    Do we really need a “Left at Alburquerque”, A & Fitch, Old Navy (say they could take over Rains!…not), or how about another McDonald, we could get rid of Java Joe’s and have a Starbucks there; wait let’s get rid of Rainbow Bridge and put in a Whole Foods!

    All I’m saying is a MARCH to TOURISM is the quickest death knoll to local businesses. Do we really need a downtown Burger King? And you think the Ojai Valley Inn is expensive now?????? wait……

    I mean we are setting pretty….we’re home buyers….I enjoy the peace. I enjoy that it does not take 1hr to leave Ojai or that current tourist don’t walk up to me and ask what “I” am doing here; or that the “whoooooooooooooooooooooo” people aren’t a regular attraction downtown.

    All I ask is that Ojai does not bow down to the tourist dollar. I’ve never seen that benefit the “actual” people of a community….ever!

    why oh why

    18 Nov 09 at 9:19 am

  6. Revenues Drop, city cuts budgets. How sweet it is. They did the right thing. Best thing I’ve read today. I hope salaries along w/positions for non-value added jobs are cut or eliminated too.
    Note/Skate Park: Just another place for the kids to smoke dope. A dumb idea then and today.
    Question: Why did we shutdown the bowling alley?

    Anonymous II

    18 Nov 09 at 9:49 am

  7. fyi – kids that do will smoke dope anywhere skate park or not

    why oh why

    18 Nov 09 at 1:25 pm

  8. The problem with tourists is that they do not patronize local businesses. If given the choice between a Starbucks and Ojai Coffee Brewing, the vast majority will choose Starbucks. They will choose McDonalds over Ojai Frostie (I miss that place).

    If Ojai “proactively” pursues an increase in tourism, we the people MUST proactively ban chain restaurants not only in the city itself, but throughout the valley. Increased tourist traffic will make Ojai much more attractive to national corporations to add locations in our valley. Would Rainbow Bridge withstand a Trader Joe’s in town? Would Ojai Coffee roasters withstand a Starbucks in the Arcade? Would Ojai Pizza survive with a Pizza-Hut nearby? With the local population, perhaps. But not with heavy tourist attendance.

    On another point, are we the people of Ojai willing to give up our friendly environment. Does anyone really think that a tourist from LA will stop for pedestrians in the crosswalk to Libby Park? So are we ready for more traffic lights, more cars, and meaner people flooding our town.

    Tourism is fine, but it can easily be overdone. I’ve seen downtown Santa Barbara change from a cute friendly little town by the sea, into the 3rd Street Promenade, right out of Santa Monica. People there don’t even return a friendly “hi” anymore!

    Ojai’s atmosphere is a luxury that we are fortunate to have – and a rarity in Southern California. We should be very careful not to sell it out because of a few years of tough economic times. Once sold, Ojai’s soul can never be recovered.

    Santa Barbara Expatriot

    18 Nov 09 at 2:51 pm

  9. why oh why, there are lots of beautiful small touristy towns that have no old navy or anything of the sort. People have always been in awe of Ojai’s old small town charm and the downtown shops. We’ve lots of local artists, small local theater, outdoor recreation with beautiful views. We’ve great people here. Don’t decide that tourism automatically means big business. Ojai has lots of things to offer.

    Anon

    18 Nov 09 at 3:03 pm

  10. Anon, true that….but and why is there always a big BUT!

    I’ve seen it far too many times…starts out the local businesses get helped initially by the tourism…then it happends…

    A tourist sees Java Joes….what a cute location….
    That tourist is a mover and shaker over at StarBucks…that tourist offer the owners of Java Joes a price they cannot turn down and so it begins

    yep that easy….seen it

    why oh why

    18 Nov 09 at 5:27 pm

  11. To All Concerned,

    I just had a long discussion with a couple of my old comrades, Anon.5 and the retired lieutenant, John Doe, at the most recent Truth Coalition meeting.

    We all agreed that the problem is crime. Ojai is now second rate because of crime. We need to be tough on crime if we want this city to survive. Creating a haven for drug addicts at the skate park is not a solution-it is a problem.

    The Vigilante

    The Vigilante

    18 Nov 09 at 9:25 pm

  12. So the merchants of Ojai want the city to invest our tax dollars into making their businesses profitable. Isn’t that the merchants own responsibility? And which businesses would be invested in – all of them equally or just the “tourist attractions”? I’d much rather see the city invest in infrastructure and that which benefits ALL residents such as Libbey Park instead of some spoiled rotten kids’ playground like the skatepark. Ojai is an environmental gem, let’s keep it beautiful.

    Mindful

    19 Nov 09 at 1:00 am

  13. Dude – or uhm “The Vigilante”
    yes there is crime in Ojai but not CRIME meaning murder, prostitution and unsafe areas to walk in at night. Been coming to Ojai since 1976….still safe to walk at night and I live near 2 bars

    however there is a “gated community” that you could lock yourselves down in at night if you’d feel safer…

    and surviving crime ridden cities – St Louis – NYC – Little Rock – Atlanta – Chicago – Oakland – Des Moine [known as little Chicago since the 1920's] – London – Oxnard….many many more are still surviving with crime.

    and they talk about me being scared….geeez it’s OJAI! Sorry here it’s tourism that can turn into a local economic problem….trust me

    why oh why

    19 Nov 09 at 6:28 am

  14. Mindful, agreed, I don’t suggest that Ojai invests in the businesses but, the things like the trash pick up in the parks (not to long ago there was discussion that this would be cut out or back), the roads, libbey, general updating and beautification etc…..also a visitor center and perhaps some sort of nice ‘ads or write ups in Conde Nast, etc’ to let people know that this little niche would fit beautifully for a mini vacation (for those who can only afford a day or two) and vacations for others of course who can. People who can only afford a day trip or a few days will not always be in that situation and after an introduction, may like to return to check other things out. Bolstering local businesses, artists, the theater, cafes, it wasn’t so long ago (80′s?) when Ojai had a healthy tourist flow and seemed much more capable of taking care of community needs.
    How many of us day trip to places like Solvang, or if we can get away for a day or two, Carmel, or Big Sur? We do as much as possible. This town was once a great getaway for people, celebrities included. I seriously doubt the Inn or The Cluffs would mind accomodating more people.

    Anon

    19 Nov 09 at 9:21 am

  15. we had a murder last spring and an attempted murder last New Year’s

    murder

    19 Nov 09 at 9:31 am

  16. Good thing that the City Manager didn’t ram through the raises he proposed earlier this year. Remember this? http://ovnblog.com/?p=579

    Look. There is no money. There is not going to be any money. The state has a $21B deficit. Every city has the same problem; Ojai is unique, but the fiscal problem is not. The city council and manager commits to Libbey Bowl and skate park, etc. without funding. This is not right. Please, face up to reality and make the cuts. We have to reduce our expectations, and stop blaming Starbuck, tourists and Ojai Valley Inn for a nationwide problem.

    Just another taxpayer

    19 Nov 09 at 10:50 am

  17. I don’t get what all the fuss is about. I had a great year. Buying a new Porsche 911 this weekend for trips to the Spa. It’s great to be rich during the holidays!!

    Anonymous

    19 Nov 09 at 3:06 pm

  18. i was a tourist and fell in love with Ojai, so much so that I moved to Ojai. After awhile i found that if you want to survivie in Ojai you have to shop in Ventura. The people of Ojai can’t even afford to shop at the local stores they have to go else where. Ojai price gouges, thats why there are Starbucks and Jersey Mikes in town. It’s affordable.

    Keep the Faith

    19 Nov 09 at 3:45 pm

  19. And don’t forget that in order to survive in Ojai, you don’t work there either.

    new yorker

    19 Nov 09 at 5:35 pm

  20. Anonymous II; Question: Why did we shutdown the bowling alley?

    Note/Bowling Alley: Just another place for the town drunks. A dumb idea then and today. Is bowling really a sport? bowlers suck.

    King Pin

    19 Nov 09 at 5:35 pm

  21. Vigilante,

    Your words of wisdom are refreshing. Crime is the scourge of society. In Ojai, gangs are the problem. Gangs of children, gangs of bums, gangs of jerks on the internet, gangs of skateboarders. Everywhere you look there are gangs.

    If you want to solve the problem, you need to eliminate gangs. What is a gang? Any group of three or more people loitering together. It is time to bring this to an end.

    You see, I offer solutions to problems. The problem is gangs. The solution is to arrest them on the spot.

    Ret. Lieut. John Doe
    Gangbuster

    John Doe

    19 Nov 09 at 5:57 pm

  22. new yorker, are you really from New York? and if so did you leave because the state gov. was ripping you off? are you seeing the same trend here?

    King Pin

    19 Nov 09 at 6:02 pm

  23. Mindful; “So the merchants of Ojai want the city to invest our tax dollars into making their businesses profitable.” Kinda like a federal bail-out? that’s working well isn’t.

    NoMoreSpending

    19 Nov 09 at 6:25 pm

  24. Ojai’s a great place to own a second home. It’s sad to hear that so many working class Ojai locals are scared that they are now worth the same as their Latino neighbors. Rich people will always need their yards cleaned up and cars detailed. Hang in there!

    New Yorker

    19 Nov 09 at 8:12 pm

  25. . . . and their head lopped off during the revolution.

    The Vigilante

    19 Nov 09 at 9:42 pm

  26. Obama won’t allow your “revolution.” Happy Holidays! lol

    New Yorker

    20 Nov 09 at 5:57 pm

  27. Jersey Mikes? (deleted). So what if you have to go to Ventura to shop. I like Ojai as a small town and leave out the Mickie D’s and Jersey Mikes.

    Anonymous

    21 Nov 09 at 9:52 am

  28. The kids smoke pot and do drugs and commit crimes because the parents do the same things, so get off your high horses, people…

    StopTheWar

    23 Nov 09 at 3:50 am

  29. F.Y.I.: What would Ret. Lieut. John Doe do?

    new yorker

    24 Nov 09 at 3:25 pm

  30. Er, stop giving money to youth “education” programs and skate boarding initiatives that feed the local criminal and drug problem and put the money into schools and more police patrols? Why is it so difficult?

    new yorker

    25 Nov 09 at 8:31 pm

  31. What the heck is going on? I thought Eicher and the editor of the OVN wanted a gay village? Sounds like a
    good idea ($$$). Happy Thanksgiving.

    WeHo Pride

    26 Nov 09 at 11:32 am

  32. Deport Obama. He’s not a US citizen. Round up the illegals. Kick their kids outta school. Problem solved.

    Glenn Beck kicks ass

    27 Nov 09 at 7:20 pm

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