Carpinteria city manager: reserves shrinking, council shown options to avoid staff or service cuts

City Manager Michael Ramirez warned residents at Carpinteria’s State of the City that the city’s available fund balance is declining and that, if trends continue, officials may need to consider staff or service reductions by fiscal year 2028.

Ramirez said the city’s ongoing revenues include property tax, sales tax (including Measure X) and transient occupancy tax, but expenses are rising faster than revenues. “If we do nothing, we are gonna have to start making some serious … reduction in service or reduction in staff,” Ramirez said.

Why this matters: Ramirez told attendees that the city has used reserve funds for planned capital projects — including a recent $6.5 million pavement project — and that delays raise project costs. He said the city’s…