Southgate details $9.4 million shortfall; staff cuts and service reductions proposed

City Manager John Houston told the Southgate City Council on March 24 that the city faces a $9.4 million structural shortfall that requires “tough and immediate choices” and a series of staffing and program reductions to balance the fiscal 2026–27 budget.

Houston presented a timeline and rationale for the cuts, saying the city has already frozen some hiring but must now identify specific positions for layoff so that union bumping and legal notice periods can be completed before the new fiscal year. “We’ve frozen all positions that have been deemed essential for the city to continue to carry out its mission,” Houston said, while adding that the city must reduce staffing because roughly 80% of the general fund supports payroll and benefits.

The package staff presented assigned a proportional reduction target across departments, with the police department’s portion amounting to $3.4 million (rather than the proportional 55% share) to preserve minimum public‑safety services. Police Chief Arana said the department’s plan would cut 13 sworn positions, reduce patrol overtime and remove several crime‑prevention and support programs. “By reducing the number of officers on the street…crime will increase,” the chief warned, outlining expected impacts: longer response times, reduced investigative capacity and the elimination of the school crossing guard program.

Administrative Services proposed reallocating some salaries to restricted funds, cutting two positions and reducing outside accounting services; Human Resources would eliminate a risk‑manager position and curtail employee relations events; Public Works proposed cutting engineering and maintenance staff that would slow project delivery and lengthen response times for lighting, graffiti removal and tree trimming. Each director quantified both dollar targets and the service consequences of meeting those targets.

Union and resident reaction was immediate and intense. Brandon Williams, president of the Municipal Employees Association, urged the council to consider alternatives, noting the human cost: “There’s actual people that are affected here…some of these people have been here 20, 25 years.” Residents warned of darkened streets, slower emergency response, fewer crossing guards, and longer waits to have graffiti or broken streetlights fixed.

Several council members and members of the public urged placing a utilities‑users tax (UUT) on an upcoming ballot as a revenue option; staff explained that a fiscal emergency declaration and other procedural steps are prerequisites for placing a UUT on the June ballot and that the window has already closed for June. Council asked staff to return with the remaining departments’ reduction proposals at the council’s April meeting to complete the package.

At the meeting’s end the council unanimously voted to receive and file the city manager’s presentation and to continue consideration after the remaining departments report on April 14. Houston and department directors said they will continue to explore alternatives and will bring detailed personnel lists forward for council direction before notices are issued.

What happens next: staff will present the rest of the departments at the April meeting, then return with a finalized plan for council direction so union bumping, notices and implementation are completed by the June 30 fiscal‑year deadline.