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South Gate staff warns of $8—$9 million shortfall; proposes 7% utility users tax option
Summary
City managers told the Parks and Recreation Commission the city faces a structural deficit of roughly $8—$9 million against an $80 million budget and outlined options including service cuts and a 7% utility users tax (UUT) that staff estimates could raise just over $9 million; the proposal requires a council-declared fiscal emergency and ballot referral.
City officials told the South Gate Parks and Recreation Commission on Dec. 11 that the city faces a structural budget shortfall in the coming fiscal year and outlined a range of options that include deep cuts or a voter-approved utility users tax.
"We are on borrowed time," City Manager Rob Houston said during a budget briefing that staff has also presented to council and the planning commission. Administrative Services Director Louis Frosto said the city's general fund budget is about $80 million and staff currently projects a revenue shortfall in the range of roughly $8 million to…
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