After recently stepping down from two years as the city’s mayor and passing the gavel to Mayor Jim Reed, I think this is a good time to reflect on where the city has been recently and where we’re going.
Fiscal outlook
Despite the backdrop of a horrible economy, massive spending imbalances at the state and federal level and constrained revenues locally, Scotts Valley has navigated today’s stormy waters far better than most have over the past few years.
Santa Cruz County is looking at deep cuts again this year, with department heads ordered to make 20 percent worth of cuts in 2010 on top of last year’s 20 percent reductions. Sacramento, facing another multibillion-dollar debt with no solution in sight, is in even worse trouble.
Scotts Valley hasn’t faced and won’t have to face situations this dire, because of the fiscal frugality we’ve always demonstrated. Nonetheless, in 2009, we enacted mid-year cuts of 5 percent in our budget, letting go several valued staffers and instituting a one-day-a-month furlough. Special credit goes to Jim Reed, now mayor, whose focus on the city’s budget was the driving force behind this action.
Thanks in large part to these reductions, we’ve kept spending essentially flat over the years, despite increasing costs for retirement, medical and workers’ compensation that are beyond the city’s control. In fact, since our 2005-06 budget, spending has gone up at just a little over 1 percent a year.
Measure C allowed us to both retain police officers and build a healthy reserve of nearly $2.3 million. Those reserves will be drawn down during these tough economic times, and the upcoming expiration of Measure C revenues will present a challenge in future years, but continued good fiscal management will allow us to overcome these issues.
Town Center
We also have good news on the horizon on several fronts. While I was mayor, the City Council voted to move Suburban Propane from Mount Hermon Road, a presence that had stalled previous efforts to build the Town Center.
We have a great Town Center plan that’s approved and controlled by the city, and as the economy bottoms out and recovers, I’m hopeful we will see progress on that front.
Reading renewal
A new library is in our future. Since 1990, the city has been legally obligated to construct a new library in town with a library-only revenue stream (much like a layaway plan) that has been building since then and is now about $3 million. Scheduled payments that the county collects each year are about $330,000. A contractual penalty of $100,000 a year will also be imposed by the county if we don’t complete a library by summer 2011.
These payments, coupled with anticipated lower building costs, make it an opportune time to build this nearly 13,000-square-foot library. Progress on the library has been steady, and we anticipate opening the new library by the 2011 deadline.
Lawsuit continues
Our lawsuit against the county, which would increase our share of property taxes to the legally required minimum, was won.
The county has appealed the trial court’s decision. Its brief is due Friday, Jan. 8. Our brief is due 30 days later. We don’t expect any decision on the matter until June, at the earliest.
We are disappointed that the county supervisors, even after a judge has ruled in our favor, continue to take sides against the city and prolong this costly lawsuit.
Good-faith government
The past two years also saw important city measures on environmental protection, water conservation, improvements to infrastructure on and around school property, a hotel planned for Scotts Valley Drive and other positive news. But, most of all, I feel good that the city has upheld its reputation for transparent government, inclusiveness and conduct that’s consistent with the best of our town. We try to be accountable for everything we do.
This has not always been easy, especially in the face of repeated false allegations about the city and city personnel, in addition to occasionally boorish conduct demonstrated by a handful of opponents of the Target project.
Despite these disappointments, I believe the Scotts Valley government will remain worthy of its citizens by answering falsehoods with facts and anger with reason.
It’s always been an honor for me to serve as one of your City Council members, but it’s truly been a special one the past two years that I’ve had the privilege of serving as your mayor.
• Randy Johnson sits on the Scotts Valley City Council. He was first elected to the council in 1996 and has served as mayor four times.

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