CLEARLAKE — The City Council received a briefing on the proposed 2013-14 fiscal budget on Thursday night, and to the surprise of no one, the numbers weren”t pretty.
“Tight” is how city councilman Joey Luiz described the proposal. “Not a lot of wiggle room.”
The budget that was presented by city staff was balanced — but only after a half-million dollars in grants and other “one-time” revenues were shifted over to cover the increased expenses.
The proposed $4.5 million budget is an increase of 9 percent from the 2012-13 budget, with revenues projected to be only 3 percent higher.
But at the end of the fiscal year, the general fund should have a positive balance of $731,000 — a surplus that city manager Joan Phillipe believes is critical to the economic health of the city.
“The belt-tightening will have to continue,” Phillipe said, “and our reserve accounts will need to be funded, including those that address future liabilities.”
The biggest increases in anticipated expenditures are in the pension and health insurance coverage areas. Of the $4.5 million in expenses, personnel accounts for 71.5 percent, and of that $3.2 million, about one-third goes to pension, and health and life insurance premiums.
Anticipated revenues from property and sales taxes are slightly higher than last year, but expenses are up in practically every category, including significant jumps in supplies and materials, services and utilities, and contract services.
Talk of lean budgets and rising costs got Phillipe and the council to again discuss a possible ballot measure similar to last November”s Measure G, the proposed 1-percent sales tax increase for road improvements and code enforcement.
The measure received support from 61.3 percent of voters, but it needed more than 66 percent to pass. Council members will discuss the issue at its next meeting on June 20, when the second part of the budget briefing is scheduled.
Rich Mellott is a staff reporter for Lake County Publishing. He can be reached at 263-5636, ext. 14 or rmellott@record-bee.com.
