WATSONVILLE—Thanks in part to a massive surge in online sales, the City of Watsonville is adding roughly $1.7 million to its 2020-21 fiscal year budget.
The allocation, unanimously approved by the City Council at Tuesday’s virtual meeting, means some departments will bring back positions originally eliminated at the onset of the pandemic as a cost-saving measure.
The City Council slashed this year’s budget by roughly $4.3 million in anticipation of mass revenue loss as a result of the economic shutdowns related to the novel coronavirus. But the shortfalls currently reported are not nearly as bad as first predicted by Finance Department Director Cindy Czerwin back in June, when economists were scrambling to understand how the pandemic would affect different communities.
Sales tax from online shopping exploded, and sales at brick and mortar stores were steady during the so-called “peak” of the shutdown from April to June. The increase in local sales, Czerwin said, means the City received a larger than usual share of the revenues allocated by the state and distributed by the county.
“Behavior is changing and people are wanting to stay local and get in and get out,” Czerwin said. “That would mean our people are spending more of their money in town.”
That share, however, could eventually drop when the vaccine is distributed over the next few months and tourism-heavy economies such as Santa Cruz and Capitola start bringing in a larger share of the pie, Czerwin said.
Overall, the City is predicted to end this fiscal year at 1% below last year’s revenues. But, Czerwin said, it is not yet time to completely overhaul the budget just yet, as impending shutdowns due to a surge in coronavirus cases could negatively impact those projections.
Tuesday’s allocations instead take a measured approach to the current optimistic outlook for this fiscal year.
The allocations are as follows:
Fire department
- Allocation: $492,759
- Use: To offset various mutual aid requests during the devastating fire season. The cash will be reimbursed by the state’s Office of Emergency Services.
Community Development Department
- Allocation: $192,576
- Use: Restore a building inspector position, add salary for half of an engineer who is currently working in Public Works and increase legal services.
Parks and Community Services
- Allocation: $282,159
- Use: To continue organizing and putting on special events during the pandemic and fund capital improvement projects at various parks. Will also upgrade one position to help with park upkeep.
IT
- Allocation: $301,608
- Use: Upgrade one position and add two others. Also, to purchase servers, software and hardware for programs that have been requested to improve online access, telecommuting, online meetings and electronic documentation.
City Clerk
- Allocation: $78,992
- Use: Fund software and improvements to assist in the City’s processing of documents and running of meetings.
In addition, the police department will use $110,000 in Measure Y funds to replace some unreliable vehicles. That cash was originally thought not to be available because of projected sales tax decreases.
Also, the Public Works Department will create a new internal services fund for the Fleet Management Division, which is in charge of repairing City vehicles and equipment. That item will return to the council along with the results and recommendations from a study that recommended the fund’s creation.
The City Council will hear another quarterly budget update at its Feb. 23 meeting.
COUNCIL WELCOMES ELECTEDS
Also at Tuesday’s meeting, Rebecca J. Garcia handed the mayorship over to Jimmy Dutra, who defeated Tony Gomez for the District 6 seat in November to earn his second stint on the council.
He takes over for Trina Coffman-Gomez, who termed out.
His win was a historic one, as he is the first openly gay Mayor in Watsonville’s history.
Eduardo Montesino, who ran unopposed and also previously served on the council, was sworn into the District 1 seat vacated by Felipe Hernandez, who termed out.
Aurelio Gonzalez was, too, sworn in for his second term Tuesday. He defeated Venessa Quiroz-Carter to retain his District 2 seat.
The trio joins Garcia as well as Francisco Estrada, Ari Parker and Lowell Hurst on a council that will have to tackle several monumental challenges, including the housing crisis, affordability concerns and the fallout of the pandemic.
“We have a lot of work to do, Watsonville,” Dutra said. “As I said during my campaign, it’s time for me to roll up my sleeves and get to work… I hope that we can move forward as a community who can respect each other no matter our differences that we may or may not have.”
