Greener council takes over city in red

<p>Members of what is expected to be a more environment-friendly Petaluma City Council will take the oath of office today and begin working to fulfill campaign goals such as encouraging transit-oriented development.</p><p>Council members also will dig into more mundane concerns, including ensuring the city has enough money to keep libraries open and pay for street maintenance.</p><p>The financial reality should set in later this month when mid-year budget talks reveal if income has fallen short of expenses and what can be done to keep the city operating in the black.</p><p>"I know generally speaking that revenues will be off," said incoming Councilman David Glass, a former mayor who was elected again in November. "I want to see by how much. I'm not going to jump out and say where we need to cut. Let's see what we're dealing with first."</p><p>Councilman-elect Mike Healy, who is also returning after a two-year council hiatus, said his priority will be keeping the city afloat through the current recession.</p><p>He is planning to release a long-term strategic plan Monday for generating tax revenue but said in the short-term, cuts may be unavoidable.</p><p>"The problem with a shortfall is all you can do is reduce the expense side," Healy said. "And that's very painful."</p><p>Newcomer Tiffany Renee could not be reached.</p><p>Like many other cities, Petaluma has struggled the past year to balance a budget beset by negative economic forces including declining tax revenue.</p><p>This fall, the council approved 38 layoffs, slashed a number of programs and and instituted a four-day employee work week to close a shortfall of more than $5 million in its $38.6 million general fund budget.</p><p>Officials warned more cuts could be needed before the end of the fiscal year in June. If the economic downturn continues, it likely will require more reductions before 2010.</p><p>The state of the city's finances could be discussed in a council goal setting meeting Jan. 15 at the Petaluma Sheraton Hotel. It will be addressed in earnest in budget talks later this month or in early February.</p><p>City Manager John Brown has said he wants to avoid surprises this year. Last year, officials were caught off guard by a shortfall that forced them to start the new fiscal year with a multi-million dollar deficit.</p><p>Glass said tax revenue from auto sales will be down and the state could send the city a bill that would cut into redevelopment money.</p><p>All departments face cuts, he said, and the city could suspend annual subsidies to nonprofits that come from bed taxes.</p><p>"Everybody is going to wind up getting dinged," Glass said.</p><p>You can reach Staff Writer Paul Payne at 762-7297 or paul.payne@</p><p>pressdemocrat.com.</p>