CLEARLAKE >> The Clearlake City Council plans to discuss its goals and adjustments to the budget for the 2016 fiscal year at a special meeting on Thursday.
In a staff report from City Manager Greg Folsom, general fund revenues are approximately $172,500 more than estimated in the budget that was adopted midway through the 2015 calendar year. Projected expenditures also increased by nearly $265,000.
“To be sure, the financial position of the city is improving,” the report concluded. “But the council should be aware that there are a myriad of expenses which have been deferred to balance the budget which need to be addressed.”
Five areas were identified as key contributors to the increase in revenues: animal control, community development, legal fees, engineering, and the Clearlake Police Department (CLPD) use of the Nixle Warning Service.
Community development reported the most costs — $ 120,000 — because the city has to contract for the services since it doesn’t employ a director for the department. Not only do the contractors provide planning help to the city, but they’ve been hired to complete the upcoming General Plan Update.
Another sizeable figure resulted from the terminated contract with the SPCA. According to Folsom, the contract had a net savings of $15,003. Now, to “maintain minimal animal services” while a permanent fix is in place, the city’s budget is expected to incur approximately $34,270 in additional costs.
But not all of the areas of the budget will require some balancing for significantly increased costs, some are projected to find savings. One of those, Folsom said, is the CLPD, which is projected to come under budget by $350,000.
With the savings from the police department and the increased revenues, Folsom suggests that the city use that money to fund some reserves. One idea is the Reserve for Economic Uncertainty, which has approximately $307,000, or 6.77 percent of the general.
Other uses for the money will possibly go to equipment replacement, especially for public works and the CLPD.
The meeting begins at 6 p.m.
