Healdsburg to cut about $1 million from community services department

Healdsburg plans to slash nearly $1 million from its parks and recreation, senior services and afterschool child care programs due to a decline in local tax on hotel stays that mainly funds the city department.

The proposed cuts outlined on Monday to the community services department for the spending year that starts in July are part of the City Council’s comprehensive review of reductions over the next two years due to the downturn in Healdsburg’s economy from the regional coronavirus shutdown.

The city is already looking at revenue declines of almost 7% to its $13.2 million general fund in 2021 compared to the current spending year, forcing it to tap its emergency reserve fund.

But the deepest cuts to the city’s overall budget are set to hit the department that oversees parks and recreation because it is primarily funded through the city’s tax on hotel stays, which have nosedived. Nearly two-thirds of that tax is dedicated to the community services department, and will result in cutting back expenses by almost 20% in the upcoming year and offering only base services. The following year’s projections improve, but still include almost $650,000 in cuts.

“Our funding right now has dropped almost 100%,” Lacey Scott, vice chair of the city’s parks and recreation commission, told the City Council at its virtual meeting. “I am a mother and … use our community center for childcare and after-school programs and summer camps. We’ve really been trying to scrape by and getting that all together. This does affect our entire population.”

The city is already planning to spend into the red, by more than 3% through next summer — but no more — for the department’s expenses just to maintain services such as medical appointment rides for seniors, parks and open space maintenance and other community support services.

“It is essentially a temporary loan from the general fund,” Heather Ippoliti, the city’s administrative services director, said Monday. “But it’s important that we keep the general fund fund balance and reserves as solid as possible. We know how fast revenues can change.”

In the proposal, which the City Council plans to adopt on June 29, city staff has committed to keeping the community swimming pool closed for all of 2020 to trim costs, with hopes of reopening next year. Other annual spending, including the Tuesday summer concert series in the plaza, downtown decorations for the Fourth of July and year-end holidays, as well as on arts and culture events like the popular Dia de Los Muertos celebration, for now will be eliminated.

“I like to use the word ‘suspended,’” said Mark Themig, Healdsburg’s community services director, “because we hope they’re going to come back. If there is a downturn in the economy this fall because of another wildfire or because of COVID returning, then we will need to look at how we make additional cuts. The reverse is also true, and if things are better, then those revenues need to be allocated where the priorities are.”

To help make up for some of the losses, area nonprofit Corazón Healdsburg, which focuses on education programs for the city’s 30% Latino community, raised $200,000 through donations from Carson and Kathy Block, as well as the Healdsburg Kiwanis Club. The bulk of that will go toward summer child care needs, with $300,000 more donated by the Foley Family Foundation available to meet other unfunded needs, which could include afterschool programs this fall.

Residents who spoke during Monday’ meeting said cutbacks had the potential to disproportionately affect the city’s disadvantaged communities, including seniors, low-income families and minorities. They urged City Council to hasten bringing back programs being put on hold as soon as finances allow.

“The community services have been a lifeline to the seniors out in the community,” said Terry Kemp, chair of the city’s Senior Citizens Advisory Commission. “My thing is to tug at your heart. It’s hard for me to put a dollar amount on something that has been so priceless for the seniors. Just having groceries delivered or being able to look someone in the eye, hopefully they feel not so alone.”

Also Monday, City Council recognized outgoing City Manager David Mickaelian for his 15 years of service, the last six in his current position. He departs at month’s end to become general manager of the homeowners association for Tahoe Donner in Truckee.

The city also put forth an initial timeline for replacing Mayor Leah Gold, who is resigning her post on City Council at the end of June. Council members can choose to appoint someone to the seat for the remaining two-plus years, or place it on the November ballot. Other options will be discussed at a June 29 special meeting when council looks to adopt its budget.

You can reach Staff Writer Kevin Fixler at 707-521-5336 or kevin.fixler@pressdemocrat.com. On Twitter @kfixler.