Friday, 16 July 2010 02:07

Plymouth Sees Significant Budget Challenges Ahead

slide4-plymouth_sees_significant_budget_challenges_ahead.pngAmador County – The Plymouth City Council late last month received a warning of significant budget challenges over the next 2-4 years, while it could still expect some major milestones in fiscal year 2010-2011. City Manager Dixon Flynn in a preliminary budget report June 30th said the city has gone through significant changes, including this fiscal year’s completion of the city water pipeline, in a partnership with the Amador Water Agency. The city also has begun reconstruction of its sewer system with a recovery grant of $2.8 million, and the 2 projects combined will help lift a state building moratorium the city has faced for 20 years. Flynn said the “city faces significant budget and cash management challenges during the next 24 to 48 months,” due to the building moratorium and a “continued weakened national and state economy accompanying diminished economic activity.” Flynn said the city faces “significant short-term financial challenges.” He recommended several strategies, including limits on service contracts and renegotiating agreements when possible. He recommended not filling 2 vacant maintenance jobs until city finances recover. Strategies included keeping track of spending and revenue, and “reviewing the city’s annual support of community organizations.” He recommended “developing a strategy” for Community Development Block Grants and leveraging the grants “when possible to promote community development.” Flynn said there were nearly a dozen occurrences expected in the city in the coming year, that would help the city’s economics, including finalizing a fire services agreement. He expected the city to finalize “at least one development agreement” for the construction of housing. He said “the city will sign a long-term agreement for the sale of water from the Arroyo Ditch,” and receive a $300,000 Safe Routes to Schools grant. The city will also host a major car show in May and could adopt a new “Housing Element” in its General Plan. Plymouth could also get a grant to finish its firehouse upgrade, or to resume the remodel of Lodge Hill. He said the city should also expect more income with a potentially increased Transient Occupancy Tax. Other projects include replacing the flag pole at Sharkey Begovich Park, paving and lighting the city parking lot next to it, and fully funding an upgrade to the Main Street intersection at Highway 49. Flynn said if all of those are accomplished, it would move the city toward improving its economic base and creating “a foundation on which future jobs may be created.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.