LAKEPORT >> A second budget workshop for the 2015/16 fiscal year, held by the Lakeport City Council Thursday, resulted in a draft that will be submitted for approval.
Thursday’s meeting focused on the analysis of the city’s general fund, which estimates revenues for the city to total nearly $18.2 million and expenditures are estimated at $20.9 million.
The apparent gap is accounted for in redevelopment bonds. Accumulated over past years these will be used as planned to cover $2.7 million in improvement projects.
“The money is from redevelopment bonds that are sitting in an account waiting to be used on specific projects,” Lakeport City Manager Margaret Silveira explained.
City officials made it clear that the amount did not represent a deficit as the public generally understands the term.
“At home, when people see expenditures exceeding revenue, that means your bank account went to zero and you’re swiping your credit card,” Mayor Martin Scheel said.
Silveira likened the surpluses to having a savings account that can be tapped into.
All surpluses will not be used this year, as some will be saved for the 2016/17 fiscal year, according to Lakeport Finance Director Dan Buffalo. Additionally, the money can only be used for capital improvement projects — the largest expenditure in the budget, accounting for approximately $10.9 million.
“We are going to be doing a considerable amount in the current year,” Buffalo said. “But expect that to drop off in coming years.”
Capital roads projects include the Downtown Lakeport Improvement Project, which accounts for $1.9 million; rehabilitation of Bevins Street; pothole repairs and dig-outs, crack repairs and striping on Eleventh Street.
As for infrastructure capital projects, lakeshore storm damage repair; renovations at the Carnegie Library; the replacement of two sewer mains, as well as the completion of United States Department of Agriculture (USDA) sewer and water projects are included.
The city’s general fund was also discussed during the workshop.
“We rely very heavily on sales tax as the main source of revenue for the general fund,” Buffalo said.
Of the city’s total general fund of approximately $4.2 million, sales taxes account for a little less than $2.2 million. Property taxes contribute a little more than $860,000.
Altogether, taxes make up 78 percent of the general fund. Licenses, permits and franchise fees are the second largest contributor, accounting for 9 percent of the general fund.
The largest expenditure to the general fund is salaries and benefits, which uses 63 percent — or nearly $2.8 million.
The first workshop was held last week, but required a special meeting to be scheduled so the council could hold its regular meeting.
As the budget is still in draft form, some aspects may change between the first workshop and final approval.
Contact J. W. Burch, IV at 900-2022.
