Avalon Citys Population - Essay Example

Famous for its summertime beaches and harbors, Avalon also boasts of its tourist-oriented businesses scattered along its coastlines. Other destinations also abound which include forest and hill trails surrounding the city. Scattered near the slopes of the mountain are small houses and buildings, mostly two to three-story high. In addition, large apartment complexes, inns and hotels can also be seen around the city (Avalon City Council 2006). Avalon's total area, according to the United States Census Bureau (2000) is 8.2 km (3.2 mi). 7.3 km of which (2.8 mi) is land and 0.9 km (0.3 mi) of the area (10.48%) is water (U.S. Census Bureau 2000). The city's population is only about 3,500 according to the US population census in 2000. About 719 families live in the city composed of about 1,158 households at an average density of 252.7/km (654.2/mi) and 1,839 housing units. Population density is estimated at 429.7/km (1,112.4/mi). The racial composition of the city includes 71.63% White, 0.74% Black 1.02% Native American, 0.61% Asian, 0.22% Pacific Islander, 20.37% from other races, and 5.40% from two or more races. 45.95% of the population are of Hispanic or Latino background. Out of 1,158 households, 38.3% had children below the age of 18 residing with them; 44.0% of these are married couples; 11.2% had a single female householder, and 37.9% are considered non-families. Of these households, 31.3% are individuals living independently and 10.3% are 65 years of age or older living alone. The estimated average household size is about 2.65 and the average family size is about 3.38 (U.S. Census Bureau 2000). Avalon City's population is quite diffused with 30.3% of the population below 18 years of age. 7.7% are from the age of 18 to 24. The population is also comprised of 30.2% of individuals ages 25 to 44, 21.7% of these are aged 45 to 64, and only about 10.1% are 65 years of age or older. 34 years old is the median age. As for female to male ratio, for every 100 females there are 99.4 males and for every 100 females age 18 and over, there are approximately 98.2 males (U.S. Census Bureau 2000). The average income for the household in the city of Avalon is estimated at $39,327 while the median income for a family is approximately $46,406. Males have higher median income at $30,789 as compared to the females whose average income is $24,643. The city's per capita income is recorded at about $21,032. 9.2% of families and 10.4% of the population live below the poverty line, which includes 11.5% of the residents under the age of 18. About 4.6% of individuals age of 65 or above live under the poverty level (U.S. Census Bureau 2000). There are various factors that will clearly affect both the expenses and revenues of the city of Avalon. First, it is apparent that about 4.5 percent to 10 percent of the ageing population is dependent on the city's health care systems. Second, employed residents constitute about 74.5. This percentage is high as compared to the national employment of about 63 percent. However, the city needs to consider the population living below the poverty level, which comprise mostly of the younger individuals. The city government then, needs prudence on planning which type of program to implement as the pattern of population is quite diffused and spread out. The target of poverty alleviation measures would be the young mostly, comprising of about 11.5 percent. Families who live below poverty level are estimated at 9.2 and individuals below poverty level, 10.4. The unemployment rate in Avalon is quite high at about 5.20 percent as compared to the US average of 4.60%. About 50 percent of the unemployed are of African descent and 8 percent are Hispanics. Although Avalon jobs have augmented by 3.35 percent, per capita is lower compared to the national figures. As of the last census, Avalon per capita stands at $21,032 dollars as compared with $21,587 national per capita. Hence, the Avalon government must increase its efforts to curb unemployment and increase income of the population. Job generation programs could further enhance revenues, and the rate of return for the government expenses incurred will be higher or even just maintained. Avalon's population is quite manageable as it is quite small but apparently, the city authorities must encourage further education. Though current and existing data is not very clear on the contention that individuals with higher level of education have better jobs or higher salary, there is still a strong existing correlation on unemployment and education or skills. Currently, only 20% of the population from the age of 25 or older has college degrees (U.S. Census Bureau 2000). Furthermore, there is a strong desire for the existing government to depend on state-shared revenue and taxes on local sales. However, these are unpredictable and extremely volatile as these are sensitive to transformations in economic climate as well as national, regional and local economic changes. Avalon's ageing population which now stands at about 10 percent will face higher percentage in the next decade as 21 percent of the population are about to become senior citizens. This will affect the city's revenue system, as these percentages are the biggest contributor to the city economy. As Avalon's demography and employment data shows, household income from the age 25 to 54 are the highest starting at $36,417, growing to $40,909, from the age of 35-44 and peaks at $50,809 from the age of 45-54. Income declines from the age of 60 and over which stands at the average of $37,000 declining further as the age goes higher (U.S. Census Bureau 2000). The same observations can be said of some of the younger population who as aforementioned, live below the poverty line. Thus, the city will face further decline in revenue as more of its population face ageing. Furthermore, the city will also increase it expenditures in return as the requirement for vital city services, capital improvements, and infrastructure maintenance and development progressively increases as a direct outcome of population growth, ageing population as well as when the city becomes older and dilapidated. This becomes a mounting predicament for the city, as it must increase its revenues the same time as it must increase spending. Thus, the city must look for new revenue sources. It could be observed that as Avalon is a tourist destination, one way to increase revenues is to improve tourist facilities and city facilities to make it more convenient for visitors of the city. An increase in investment in this revenue source could also mean, increase in employment growth rate. The problem with this is that, it is quite improbable to identify the demand for tourism way beyond into the future. Hence, sometimes it is necessary to come up with short- and long-term strategies that are plastic enough to meet a wide range of possible consequences. Another area, which could affect the city's revenues as well as incur expenses, is the service sector of the economy. Since Avalon is a tourist destination, it is important that the services be improved. Hotel, restaurants, inns or bed and breakfast motels could be opened, as well as historical places and other destinations. The government can generate more jobs by training the unemployed youth to become tour guides which for a minimal fee, they can show the tourists around their area, thereby selling and advertising the destinations of the city at the same time. This in turn could create more jobs and generate more revenues for the government. Residential and the real estate businesses may need a bit of a hand from the city government in order to increase demand for the housing and real estate needs. Although this increase in demand could drastically jack up the already high cost of real estate, this will have good returns for the city government in the future. As with the expenses of the city government, we can observe that the main concern will be on service, as for instance, government operated hospitals, poverty alleviation measures as well as infrastructure, improvements of the tourist areas, cleaning the coasts and waste management if tourists flock into the area during the tourism's peak season. Other than that, the government may also incur expenses on its staffing, wage payment of the city government's employees. As aforementioned, Avalon's government may face drastic changes in its revenues and sources of funds in the near future if their present problems are not answered. Still, positive changes may occur as when the city decides to center its city improvements in order to attract tourists and in the coming of tourists, businesses may also increase. In addition, it is observable that the city lack production facilities, which strengthen economy of any territory. Change may occur in revenue, employment, expenditure and many more if the city's output on farming, goods and production and service output increases. If the city focuses on developing its service sector of the economy, revenues and funds may become more liquid and volatile. Economically, the service aspect of revenue source is the most changeable and volatile. Thus, in its budget plans, the city government must take into consideration capital projects and infrastructure improvements, energy, water and waste management as well as public transportation. This will include also hospital funds operated by the city government as well as wage and salaries of staff and workers who labor for the city government of Avalon. In addition, fund must also be allocated to contracted companies and individuals whom the Avalon administration signed an agreement with for contracted services or payment of purchases. If the city has outstanding loans and other debts incurred, these must be likewise specified in its budget plans. The primary source of Avalon's fund and revenues is tourism and its services as Avalon is a tourist destination, which provides hotels and other accommodation (Avalon City Council 2006). Other principal sources of revenues of the city of Avalon include sales tax, which stands at 8.25% and which according to the city government have increased. Other sources remained constant and unchanged and these include Land Use" based fee for Sewer, Solid Waste and Salt Water management; likewise included is Wharfage fee. Transient Occupancy Tax rate has increased to 9% in 1994 as the city caters to transient visitors to the area. This is use mainly for promotional effort to boost tourism. For redevelopment agencies of the city, the main source of funding is the property tax that is generated by growth and higher property value (Sullivan 2006). Currently, the city's principal funds used are the General Fund and Harbor Fund in which the outstanding balance is approximately $4,000,000 dollars. The city's annual budget is estimated at $15,000,000 of which $7,000,000 is appropriated to the Avalon Community Improvement Agency (Avalon City Council 2006). The total outstanding balance for the budget currently stands at 6.7 million dollars. If the budget estimate is a strict estimate that means that the city incurs a deficit of more than 50 percent of its current fund balance. In addition, the city has utilized General Funds and Harbor funds to allocate financial aid to Avalon Municipal Hospital and Clinic that no longer generate much income. This shrinks the city's general funds more and thus, the city has difficulties in meeting its other needs. Still, the city government states that the city is in "healthy financial condition" and resources are sufficient for the city to pursue improvements in capital projects and infrastructure. The City's general fund is divided among the following: General safety and services, infrastructure, traffic safety, insurance, housing and childcare (Sullivan 2006). One of the main sources of fund in the city of Avalon is the property tax which is utilized for funding redevelopment agencies. This agency, The Avalon Community Improvement Agency created the implementation scheme, which involves draining of sewer and storm drain, improvements of the streets, construction of city government buildings and affordable housing projects. Other revenues come from sales tax and services, Medical Center Overhead - revenues that are reflected to the city's administrative and insurance fund - service tax, transient occupancy tax and the city infrastructure fund. The childcare fund used to generate revenues but it no longer able to offset the expenses of the city in providing the service (Avalon City Council 2006) (Sullivan 2006). The revenues that have been most jeopardized by the state's financial difficulties would be the revenues from service tax as this threatens provisions of significant public services so as delays necessary infrastructure projects. In addition, hospitals and clinics may not be able to raise revenues as these have no operating reserves and operating subsidies are allocated them in order for these medical establishments to continue operation. In turn, property tax, the main source of funds by the City's redevelopment agencies, may not be able to generate revenues if the state faces financial woes. This is because property tax revenue generation is stimulated by growth and higher value of property and if the state's growth is thwarted, the revenues will be allocated to county governments instead. If the state's General Fund declines, as for instance, the decline in revenues from the real estate business, revenues for the General Fund which is closely connected to real estate which includes Property Tax, Documentary Transfer Tax, Utility, Licenses and Permits will also decline as a result. State actions could also result to the decrease in revenues for sales tax and vehicle licenses fee. Furthermore, Proposition 57 of the state of California, introduced on March 2, 2004, initiated a $15 Billion bond measure to refinance the state of California's debt. One feature of the bond measure affected the city's local sales tax revenue. Referred to as the 'triple flip', this feature suspends a quarter percentage of the city's sales tax which will be utilized by the state for the repayment of the bond (Sullivan 2006). Other revenue sources aside from the aforementioned are the following State and Federal subsidies, higher education subsidies from the Federal government, intergovernmental revenues, grants and intracity charges. The city of Avalon also benefits from the Federal Department of Housing and Urban Development (HUD) which founded the Community Development Block Grant (CDBG) scheme to regenerate low and moderate-income in various American cities. Avalon's CDBG revenues change every year. Drug Asset Forfeiture Fund is another source of revenue, which is estimated after drug assets are seized, and after the revenues are turned in to the City. State Gas Taxes are derived from State of California taxes on gasoline purchases and appropriated to each city quite equally. These revenues are restricted which can only be utilized on public street construction, improvements, and/or maintenance. There are other special revenue sources such as the Disaster Relief Fund from the Federal Government, State and other agencies (Sullivan 2006). The major disbursements for the city of Avalon include, first, the Community Improvement Agency whose annual budget is an average of approximately $7,000,000. This is specified in the five-year Capital Improvement Plan of the city as stated in its current budget document. The city administration initiated the plans and specifications of these improvements for the past year but actual improvements and constructions have barely started. Incorporated in these plans are the following: reconstructions of roads, pavements, intersections, sidewalk and pedestrian crossings, various sidewalk repair projects, fuel dock reconstruction and a number of sewer and saltwater system reconstructions. For the city, improvements represent the main outlays of funds as much of the city's infrastructure system is in virtual disrepair. Much of these outlays are enclosed in the five year-plan of the city but many of the improvements are also recurring expenses, as for instance, the public improvement fund is set every year, although expenditures on this item on the budget cannot be very well predicted, the need for improvements and maintenance of the city should be funded efficiently since this include the day-to-day maintenance activities. Covered in this regular maintenance and improvement services are water operations, sewer management, traffic maintenance, maintenance of city facilities, garbage collection and recycling, landscaping and various custodial services. The city's move to create a fund for improvement during the course of five years is a much better alternative. The City Hospital fund included in the General Fund requires a $1,000,000 yearly subsidy and this is also one of the city's recurring expenditures (Sullivan 2006). For more than two and a half years, Avalon City's populace is conscious of the State of California's financial difficulties. The state's long-term budget predicaments are considered unprecedented in the history of the state. The aforementioned measure, the 'Triple Flip' introduced in the mid-2003 redirected considerable amount of local sales tax, redevelopment tax, and the vehicle license tax to the state funds. The one-cent sales tax revenue allocation of the local government of Avalon City, likewise redirected 25% of the one cent to the state's revenue in order to pay the state's deficit on its bond payments. Even though the state reimbursed the appropriated sales tax through property tax, the result is zero revenue for the local government of Avalon and even acquired deficits (Sullivan 2006). Clearly, the economic condition of the state greatly affects its local government units. Economic difficulties faced by the state and the nation as a whole will also have considerable impact on the city's finances and expenditure appropriations, as the city must reduce it operating expenses as well as temporarily halt construction of some important development projects. The forecasted structural budget deficit of the state estimated at $8 billion may also affect the city's expenditures; thus, the city has concocted schemes to thwart the effect of this by creating short-term budgetary policies. In addition, the local government expenditure will be affected by appreciating property value, investment, and local employment data and statistics. The effects of inflation on the expenditure of the city is another important issue as this will put to a test the capability of individuals and businesses to endure the increase in costs of energy-related commodities and products as for instance gasoline, electricity and natural gas. The effect of inflation may not be easily controlled as a result of high housing costs and other increasing costs of prime commodities. Inflation has huge impact on expenditures as it lowers the value of money. Thus, the state's economic difficulties and long-term financial adversities will considerably affect the funds, budgeting considerations and expenditures of the city of Avalon (Sullivan 2006). The city of Avalon's General Fund expenditures focus mainly on the city improvements since it is a major tourist destination of the state. As much of its revenue comes from tourism and services, it is quite logical for the city to prioritize improvements of the city. The city 'aggressively pursues' (Avalon City Council 2006) enhancement in infrastructure and capital projects. This expenditure is considerably affected by external factors such as inflation as the budget failed to keep up with the increment in cost as a result of increased staffing, additional expenses on services and other improvements. These adjustments in the city's cash flow were the results of the state's Proposition 57 with regards bond measures. Moreover, this has resulted and will result to a 25% reduction on the city's monthly revenue for 7 years until 2012. Most of the city's expenditures are controlled by the city but the consequences of the state's economic policies have great impacts on the expenditures of the city. The city likewise puts extra efforts on public safety such as traffic, management, police protection and fire protection programs, capital improvements, and community development. All of these expenditures are controlled locally, except that the economic constraints brought about by the state's financial woes have greatly impinged upon the local government's resources, revenues and budgetary measures. This only shows that macro-economic forces have considerable impact on the finances of the nation, state, local government units and even individuals (Sullivan 2006 & Avalon City Council 2006). The city's basic mission, which is to generate more revenues and stimulate growth, is given important consideration in the city's General Fund expenditures as the biggest expenses incurred by the government went to General Safety and Service and City Infrastructure Projects. The infrastructure project alone was appropriated 15% of the budget and incurred more than the allocated percentage of funds in the previous year. A considerable appropriation is also afforded to Traffic Safety, Insurance, Housing Trust and Child Care. Still, it is obvious that the city centers its budget program on the city main source of revenue - tourism and services. With regards childcare, the funds have shrunk, as it is dependent on donations. Appropriation has been limited on this item since the more important aspect of the city's program should be given more priority. The same can be said about the city's Medical, insurance, and other welfare programs. Staffing and the city employees' salary also make up a big chunk of the budget (Sullivan 2006 & Avalon City Council 2006). Although most of these expenditures are controlled locally, the city administration cannot discount the fact that the some local expenditure is dependent on external support. The hospital and the medical service of the city both depend on the Federal government's Medicare funds and city has likewise no other source of fund for pension ands childcare. Many of these items on the city's list of expenses are not backed by any specific source of funding. The city also does not have emergency funding but somehow found ways to collect monies through one-time revenue. An example of this is the bonds of which the revenues collected will be appropriated to Avalon's infrastructure projects. The city has tried to set aside money to pay or compensate for capital replacements from external sources (Sullivan 2006 & Avalon City Council 2006). The study of the budget of a city like Avalon is a difficult task to undergo as it involves careful analysis and time-consuming scrutiny of the available data. Although information abounds about the city as a favorite destination of tourists, data and reliable information about its economy, economic activities, budget, revenues, sources of income are too strenuous to locate. Unlike other big California cities about which necessary information exists all over the web, there is a paucity of materials about Avalon. However, it is important to note how the financial woes of the whole state of California have affected a tiny tourist city of Avalon. The effects, in terms of budgetary constraints, revenues, management of expenditures, employee management and management of service to the city, strikes those who wish to delve deeper into the finances of the city as the administration of the city of Avalon was able to cope with the economic adversity. The city has managed to find other revenue sources so as improve its revenue collections despite the constrictions brought about by the state's bond offering measures. The cut on tax revenues, which supposed to have gone to the improvement of the city and the betterment of the individuals who contributed to its economic strength, have found that they too must yield to the requirements of the state. Thus, these result to the cutting back of the city's program for the children in Avalon and Avalon's medical and clinic service. Considerable questions arise, after scrutinizing Avalon's demography, economy, finances and government, based on the collected information, if Avalon represents a bigger city's demography and revenues in terms of percentages. One wonders if the city's data on the ageing population is parallel in other bigger cities all over California with regards percentage and pattern. If the patterns on the population are similar, bigger cities will share the same problems as Avalon's in the future. Furthermore, questions arise if the Avalon's budgetary management and control scheme can be utilized in bigger cities since similar financial difficulties exist. It is therefore a fascinating task to compare bigger and smaller cities on how they differ in providing solutions to the problems and various issues cities face today. WORKS CITED Avalon City Council, (2006). Avalon Living. Retrieved February 16, 2007, from City of Avalon Web site: http://www.cityofavalon.com/content/2497/2505/default.aspx Avalon City Council, (2006). Avalon Vision 2020. Retrieved February 16, 2007, from City of Avalon Web site: http://www.cityofavalon.com/content/2497/2501/default.aspx gov/servlet/BasicFactsTable_lang=en&_vt_name=DEC_2000_PL_U_GCTPL_ST7&_geo_id=04000US06 Sullivan, T. (2006). Budget Narrative. Retrieved February 16, 2007, from City of Avalon Web site: http://www.cityofavalon.com/content/2602/2630/default.aspx U.S. Census Bureau (2000). Table 10. California Incorporated Place Population Estimates . Retrieved February 15, 2007, from http://www.census.gov Web site: www.census.gov/popest/archives/2000s/vintage_2002/SUB-EST2002/SUB-EST2002-10-06.pdf US Census Bureau, (2000). California by Place - GCT-PH1. Population, Housing Units, Area Retrieved February 15, 2007, Factfinder.census. ww.census.gov/popest/archives/2000s/vintage_2002/SUB-EST2002/SUB-EST2002-11-06.pdf US Census Bureau, (2000). California by Place - GCT-PL. Race and Hispanic or Latino: 2000. Retrieved February 15, 2007, Factfinder.census. Read More