Simi Valley remains in good financial condition—no thanks to the state of California—said Mayor Paul Miller last week in his State of the City address at the Grand Vista Hotel.

The annual event, sponsored by the city and the Simi Valley Chamber of Commerce, drew dozens of business leaders who came to hear from Miller and other city officials about the economic health of the town and what they think lies ahead.

Miller said Simi Valley is expecting to end the year with a modest budget surplus despite having to transfer $4 million to the state over the next two years. He attributed the city’s enviable position to its policy of maintaining a reserve fund, regularly reviewing the budget and finding alternative funds—such as federal grants—for projects.

"These policies have served us well in the past, and we will continue to work diligently to assure that our city has a sound economic future," Miller said.

The loss of revenue to the state, however, has forced the city to freeze vacant positions and postpone projects such as road improvements, replacing outdated city vehicles and expanding city hall, he said.

The passage last year of Proposition 1A—which provides a constitutional guarantee that the state pay back borrowed money with interest—is likely to stabilize revenue by preventing the state from taking local property and sales tax and vehicle license fees. But the city remains threatened, Miller said.

"Until the state can fully address its budgetary mismanagement, our city, as well as others, will remain in danger of predatory state budget policies that seek to shift impacts to local government. The bottom line . . . the state cannot be trusted to do what’s right on behalf of cities."

Moreover, the federal government poses a threat to city coffers. Miller said in the proposed budget, the government wants to eliminate the annual Community Development Block Grant, which means about $830,000 that the city disperses to nonprofits such as the Boys & Girls Club, the free clinic, Senior Concerns and hospice organizations. The proposed budget also would threaten the city’s community-policing programs.

Even so, city officials cited several reasons for optimism:

•With traffic a major concern for many residents, a traffic light synchronization program recently was launched to shorten the time it takes to drive through the city. So far, about three dozen traffic signals along sections of Madera Road, First Street, Los Angeles Avenue, Erringer Road and Cochran Street have been synchronized, reducing the average delay time by 56 percent. More light signals will be synchronized in the coming years.

•The city anticipates issuing a record number of building permits for nonresidential developments this year, and as a result will be hiring building inspectors to keep up with the demand.

•Following the death last year of former President Ronald Reagan, the library that bears his name is experiencing a ten-fold visitor increase and is planning for the opening of the Air Force One exhibit later this year.

•The 12,000-square-foot Senior Center expansion is expected to be completed by the end of the year.

•And more tenants were added at the Simi Valley Town Center mall: Ann Taylor Loft*, Tilly’s, Charlotte Russe, California Pizza Kitchen, Urban Outfitters, Anchor Blue, Anthropologie, Vans, Brighton Collectibles*, The Children’s Place, Brooks Shoes for Kids, Bombay Company, BombayKIDS*, Lane Bryant, All Pro Sports, San’s Pizzeria, and Limited Too. Shops with asterisks are new to Ventura County.

For more information on the mall, visit www.simivalleytc.com.