Amador County – During Tuesday’s meeting, the Jackson City Council discussed its preliminary budget review and a proposed resolution finding a severe fiscal hardship if additional city property tax funds are seized by the state. In a memo to the council, City Manager Mike Daly wrote, “most indicators point to continued economic struggles and an unlikely increase in total general Fund revenues anytime soon.” He attached a resolution declaring “severe fiscal hardship” and wrote its purpose was to “send a message to the Governor and legislators to keep their hands out of local governments’ pockets and to create a responsible state budget that does not harm local taxpayers receiving local government services.” City of Jackson finances are segregated by three primary fund categories: General Fund, Enterprise Fund, and Special Revenue Funds. According to Daly, the focus of the Fiscal Year 2009-2010 budget process is the wide-reaching General Fund, the primary source of funding for Police and Fire services, as well as streets, parks and facilities maintenance. Much of the General Fund includes Jackson’s most vulnerable source of revenue: sales taxes. “Over the past two years, the City’s sales tax revenues have dropped from a high of $1,344,108 to this year’s estimate of $590,000,” wrote Daly. Considering declining sales tax revenues, he said a “conservative projection of $550,000 (for the General Fund reserve balance) is projected for Fiscal Year 2009-2010.” This reduction has the greatest impact on salaries and benefits, which represents approximately 73 percent of General Fund expenditures. “Clearly, this is all going to have a direct impact on the services we’re providing,” said Daly. The city has reduced spending in most areas and is taking other steps to retain levels of service, such as applying for a Federal COPS grant that would fund approximately of the salary and benefits for one police officer position. Faced with a State Department of Finance recommendation to borrow property tax from local governments in order to “help bail itself out of trouble,” Daly recommended Jackson support a movement by the League of California Cities to reject this proposal. Daly wrote that “continuing the cycle of borrowing to patch holes in a current year budget is not an acceptable budget solution and only delays the inevitable.” Councilman Keith Sweet noted that since June of 2008, Jackson has spent $2 million more than it’s taken in. “We’ve been borrowing from our reserves, and we’re going to have to make some tough decisions before going any further,” he said. The council unanimously approved the resolution. Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
Thursday, 28 May 2009 00:34
Jackson City Council
Amador County – During Tuesday’s meeting, the Jackson City Council discussed its preliminary budget review and a proposed resolution finding a severe fiscal hardship if additional city property tax funds are seized by the state. In a memo to the council, City Manager Mike Daly wrote, “most indicators point to continued economic struggles and an unlikely increase in total general Fund revenues anytime soon.” He attached a resolution declaring “severe fiscal hardship” and wrote its purpose was to “send a message to the Governor and legislators to keep their hands out of local governments’ pockets and to create a responsible state budget that does not harm local taxpayers receiving local government services.” City of Jackson finances are segregated by three primary fund categories: General Fund, Enterprise Fund, and Special Revenue Funds. According to Daly, the focus of the Fiscal Year 2009-2010 budget process is the wide-reaching General Fund, the primary source of funding for Police and Fire services, as well as streets, parks and facilities maintenance. Much of the General Fund includes Jackson’s most vulnerable source of revenue: sales taxes. “Over the past two years, the City’s sales tax revenues have dropped from a high of $1,344,108 to this year’s estimate of $590,000,” wrote Daly. Considering declining sales tax revenues, he said a “conservative projection of $550,000 (for the General Fund reserve balance) is projected for Fiscal Year 2009-2010.” This reduction has the greatest impact on salaries and benefits, which represents approximately 73 percent of General Fund expenditures. “Clearly, this is all going to have a direct impact on the services we’re providing,” said Daly. The city has reduced spending in most areas and is taking other steps to retain levels of service, such as applying for a Federal COPS grant that would fund approximately of the salary and benefits for one police officer position. Faced with a State Department of Finance recommendation to borrow property tax from local governments in order to “help bail itself out of trouble,” Daly recommended Jackson support a movement by the League of California Cities to reject this proposal. Daly wrote that “continuing the cycle of borrowing to patch holes in a current year budget is not an acceptable budget solution and only delays the inevitable.” Councilman Keith Sweet noted that since June of 2008, Jackson has spent $2 million more than it’s taken in. “We’ve been borrowing from our reserves, and we’re going to have to make some tough decisions before going any further,” he said. The council unanimously approved the resolution. Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.
