CLEARLAKE >> “Our financial condition is stable,” Clearlake Finance Director Chris Becnel assured the city council on Thursday evening. “But stable doesn’t mean good and it doesn’t mean bad. What it means is that the city is currently meeting basic operating needs, but no more.”
The council was in the middle of their review of the city’s 2015/16 budget. Thursday marked the second and more refined workshop.
Becnel said that basic operating needs should be met first. These include essential public safety, minimal infrastructure maintenance and community development needs.
The total operating budget for the city is a little less than $6.1 million, with the general fund accounting for approximately $4.3 million.
Capital projects costs will total a little more than $3.1 million. However, nearly $2 million of those costs will be provided by Community Development Block Grants and the Active Transportation Program. The funds will go toward the Phillips Avenue and 18th Street projects.
As for revenue sources, sales tax accounts “for the vast majority of income” for the general fund, totaling a little more than $2.3 million. Property tax brings in approximately $770,000.
Approximately $400,000 of sales tax is generated by Wal-Mart, Becnel said.
Salaries and benefits account for most of the city’s expenditures, accounting for a total of approximately $4.6 million. Nearly $735,000 — or 16 percent — is allocated to health insurance, which is the second largest expenditure. Payments to the California Public Employees’ Retirement System (CalPERS) is the third largest cost at approximately $641,000, or 14 percent.
Becnel also addressed staffing increases during the workshop.
The city employs more than people in the code enforcement department. The Clearlake Police Department (CPD) staffs the most positions, with more than 30 officers. Public works, which includes the parks and roads division, has a total of 8 employees. Community development has one position. The remaining 6 positions work in administration.
The CPD accounts for 61 percent of the general fund’s departmental expenses, or approximately $2.7 million. Of that, $2.3 million got toward personnel.
Becnel told the council that they would be able to make modifications during the mid-year budget review. However, should changes be made prior to that, a “zero sum computation” approach is recommended.
“Any proposed changes should be offset with spending reduction from elsewhere in the budget,” Becnel explained.
The budget will be brought to the council at it’s June 25 meeting for approval.
Contact J. W. Burch, IV at 900-2022.
