CLEARLAKE — The Clearlake City Council will review its 2008 budget process tonight at its regular meeting. The meeting will begin at 6 p.m. with a presentation by Susan Jen of the Health Leadership Network followed by consent calendar items and the budget process review.
The city”s budget hinders on budget decisions that are currently being discussed at the state level. According to City Administrator Dale Neiman”s staff report, the city is looking at a $575,841 decrease in funds due to fee increases and non-allocations at the state level. An additional $150,000 decrease is expected for the Redevelopment Agency.
“The state is now 53 days late in adopting its budget,” Neiman states in his report. “We cannot finalize the budget we will present to you until the state adopts its budget.”
State budget decisions expected to impact the city include a $212,760 property tax loan to the state; a $130,081 loan to the state in Prop. 42 (street maintenance) funds; and a $75,000 increase in booking fee reimbursements, a $58,000 increase in fees for the Department of Justice and $100,000 in funds that will not be allocated in supplemental law enforcement service funds.
“Based on the latest information, the general fund would start the year with $420,000 in cash and end the year with a ($4,000) negative cash balance. These numbers are based on the state taking $575,841 from us,” Neiman states in his report. “We would have to make a number of cuts to balance the budget if the state takes $575,841 from us. We are evaluating a number of alternatives.”
The council is not expected to take action on the matter and will engage in comments only.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
