Ventura County milks money from city of T.O. and gives nothing back, officials say
By Nancy Needham nancy@theacorn.com

Concerned parents packed Thousand Oaks City Council chambers last week to hear what ideas city leaders might offer to ease the budget woes that led the school district to decide to close two award-winning elementary schools.

On the agenda was a recommendation directing city staff members to work with the school and park districts to explore funding options to support projects, programs and services.

The five council members instead decided to focus on the elephant in the room- what they described as a conservative estimate of $10 million a year Ventura County takes from Thousand Oaks residents without providing any services in return.

Councilmember Dennis Gillette said the overpayment of money to the county "is a major irritation to all of us."

He said the city needs all of its funds to take care of residents, so this isn't the time for Ventura County to play Robin Hood.

Early in the meeting finance director Candis Hong made her case for why the city needs to meet with the school and park districts.

"The city of Thousand Oaks has had the ability in the past to provide significant funding to the Conejo Valley Unified School District and the Conejo Recreation and Park District. Due to declining resources this ability is to be significantly diminished," she said.

In the past the city has contributed to projects that include auditoriums and stadiums for schools, and the Teen Center and Senior Center for the park district.

Hong said the city would be unable to provide the same level of service that residents expect. As school officials find they must cut programs and close campuses, the city's challenges include the California budget deficit of $16 billion, an economic slowdown, declining local revenues, changing demographics, near buildout in residential construction, reduction of state funding for schools, combined with declining enrollment and the Land Use Traffic Initiative, Measure B, Hong said.

Due to the "perfect storm of economic uncertainty and declining revenues," it's essential for the city to explore gap-closing strategies, Hong said.

The staff plans to explore all possibilities before proposing drastic budget cuts, she said.

Raising taxes was listed as a possibility.

Councilmember Andy Fox reminded the council of a recent report showing that $6 million of the money residents pay the county for fire protection is used for fire protection elsewhere in the county. He pointed out that Simi Valley has the same fire protection provided by the county yet pays $6 million less.

Hong also noted that, since 1954, the county has taken 3 percent for administration of a 1 percent sales tax collected by the state from Thousand Oaks residents. That comes to about $800,000 a year, she said.

When Fox asked if those were legitimate administrative costs, Hong said that was something to be explored. The portion is withheld by the state and given directly to the county, she said.

A redevelopment agency property tax going to Ventura County from Thousand Oaks was also questioned. That tax comes to about $1.6 million a year, Hong told Fox.

City Manager Scott Mitnick said those three items are just a few of many such fees paid to the county that must be explored. The issue was brought up in May 2006, he said, and the city has made some progress working with the county.

"This is a fair share issue- money that's leaving this district and going to other districts in the county. That's all there is to it," Fox said.

Mitnick said some agreements entered into in 1964, when Thousand Oaks incorporated, have been detrimental to the city, and although the city can try to correct them, it would be complicated. He emphasized examining existing inefficiencies and inequities and correcting them before looking toward new revenues or new taxes, or increased revenues or increased taxes.

"We're talking about $10 million the Thousand Oaks residents pay that goes to the county- services that you really don't get, because this is a full-service city. We contract with the police department; we pay for that. We're part of the fire protection district; we pay a lot more for that," Fox said.

Gillette noted the city must be careful when the state is experiencing a large budget deficit. He recalled that in the past when the state had budget troubles, it targeted city district funds.

Gillette also reminded the council of the $500,000 the city pays for services such as crossing guards in unincorporated areas, which the county is actually responsible for.

A 5-0 vote directed city staff members to work with CVUSD, CRPD and the county to explore funding options to support a variety of one-time and recurring projects, programs and services.

It was also decided a letter would be sent to the county board of supervisors regarding the city's concerns about the fire district overpayment for services and other county tax and funding issues. The board was asked to put this on its agenda to see if county money could be used to lessen the CVUSD shortfall.