With a scaled back budget consisting of , Glendora city officials say while the city’s economy remains on a painfully slow track to recovery, small signs of growth may be seen in the near future.
Although the nation’s recession ended June 2009, the recovery has been slow in reaching most cities.
Since losing $1.8 million in the demise of its redevelopment agency, Glendora will begin 2013 with 26.3 percent fewer full-time city positions than in 2008. Many more in city programs and services have been reduced as a result of the scaled-back workforce.
“It’s no longer about doing more with less. Now it’s about doing less with less,” City Manager Chris Jeffers stated in the city’s 2012-2013 Proposed Budget. Despite the reductions, Jeffers pointed to a slight growth of 2.9 percent in the city’s revenue in 2013, an improvement since 2010.
But the growth will be small and barely noticeable for Glendora’s 61.4 million operation.
According to the city’s general fund five-year projections, the city will have to wait several more years before it can return to its pre-recession economic status.
Jeffers attributed the slow recovery to continuing high unemployment rates, declines in the housing market throughout the nation and “lukewarm consumer confidence.”
Other high-tech, high-wage cities may experience faster, more consistent growth. However, Glendora’s growth will be “far from consistent.”
With the city dependent on sales tax and property tax collections, Glendora’s sales taxes have experienced an 8 percent growth in 2012. However, property taxes have been affected by the 3 percent decline in assessed valuations between 2009 and 2011. Property taxes make up 38 percent of the general fund income and are coming in at a slower 2.5 percent pace than sales tax.
However, the city enjoys “strong” general reserves and accurate five-year projections of its financial status, according to the proposed city budget.
Visit the city website for more information on the city’s economic report.