Saying something must be done to avert a major fiscal crisis that will only worsens in time, Ceres City Manager Doug Dunford talked the City Council Monday into paying for a consultant in an effort to see how the city can increase its revenue stream.

“In two years we’re going to be in a world of hurt,” Dunford told the Courier. “We have to look at doing something.”

The City Council approved the spending of $115,500 to keep the Lew Edwards Group as a consultant to “provide planning, communication and engagement services for the city.” Specifically the firm will be reached out to residents for opinions on how the city can deal with its budget shortfalls.

According to Dunford, the city could end up:

• Asking voters to pay more in taxes;

• Seeking the issuance of a bond;

• Cutting staff or somehow decreasing expenditures.

“I think we’re moving forward and trying to … look at ways to make the city of Ceres financially sustainable and stable,” said Dunford on Monday. “They’re helping us look at all avenues.”

The contract runs $6,750 each month through November 2026 – or until the council terminates the contract.

Dunford said the firm was selected because it helped Ceres win passage of Measure H, the half-cent sales tax measure.

A summer survey conducted by another consultant, Fairbank, Maslin, Maullin, Metz & Associates (FM3) of Oakland, showed that 73 percent of Ceres residents surveyed agreed the city of Ceres needs more revenue. The new contract is intended to chart the necessary path of achieving that goal.

According to Dunford the council has expressed its intent to assess community perspective on the current quality of life in Ceres by identifying the priorities for improvement and explore potential strategies to achieve those goals.

Dunford is nervous about Ceres’ budget picture, saying the ultimate goal of the contract is to “not see the city go broke.”

“We’re not seeing revenues meet expenditures – not even close,” he added.

Uncertainties face cities with unknown fiscal actions likely at the state and federal level and rising costs. Dunford said health insurance premiums are going through the roof with Blue Cross expected to jump 40 to 60 percent.

“This is not sustainable. Somebody is going to have to come up with ideas.”

While property tax revenues increase two percent annually, he noted the city’s spending costs are going up at a rate of close to 5 to 6 percent annually.

Public safety costs consume more than 75 percent of the general fund. 

Promises of an extra $700,000 per year in sales tax revenue from the Maverik project are also in question since a competitor is suing to block its construction

Councilwoman Rosalinda Vierra expressed concern over spending an additional $115,500 of general fund revenues and reserves.

Jon Blount, a Ceres Police sergeant who is also vice president of the Ceres Police Officers Association, spoke in support of the contract.

Joshua E. Lepper, a field representative of Laborers International Union of North America Local #1130, also voiced his support for the city finding new revenue sources, saying employee layoffs are not something he agrees with.