Wednesday, 10 September 2008 05:15

Plymouth Sees $80K Deficit

slide2.pngBy Jim Reece - Plymouth City Council saw an 80,000 dollar budget deficit for the closing fiscal year and also saw a preliminary budget for the upcoming year, with a 5,600-dollar deficit expected. City Financial Officer Jeff Gardner said he expects revenue of 565,000 dollars next year, basing that on probable decreases in tax, licensing and other revenue streams. Gardner said Planning spending was a major part of the budget overrun, with the 2007-2008 budget request of 68,000 dollars being surpassed by actual spending in planning of 156,000 dollars. But Gardner said “some of the big ticket items that are responsible for that cost overrun we believe are reimbursable.” City Manager Dixon Flynn said one of those big ticket items was city staff work on the Evitt Property lawsuit, in relation to the Plymouth Pipeline Project. Patricia Shackleton asked if COPS funding of 100,000 was coming through, in light of the state budget stall. Flynn said “every year this comes up and every year they get their funding.” Gardner budgeted 566,000 dollars in revenue for 2008-2009, with 572,000 in spending, for a 6,500-dollar deficit. “I’m really being conservative on the revenue side,” Gardner said, though the economy may arguably be rebounding, he thought it remained “in the tank.” He said he expected a reduction in property tax to revenue to continue. Flynn said big cities in the San Joaquin Valley lost property taxes due to home foreclosures and losing redevelopment increments, sales and property tax. Flynn said San Joaquin County had 984 foreclosures a month in the first half of this year. Gardner said the State of Nevada led the United States in foreclosures, with California second. The Golden State ’s top two counties also lead the country’s foreclosure, with San Joaquin County the No. 1 in foreclosure and Sacramento County No. 2 in the nation.