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Grass Valley could come close to a balancing its new budget for 2009-10 in the next few weeks, but an expected state raid on city coffers is clouding the issue, City Administrator Dan Holler said Thursday.
Officials started their budget process this spring looking at a projected $1.55 million deficit. In the past few months, they sliced that to about $600,000 by cutting employee hours, about a half-dozen jobs and orders for goods and services.
“We're going to be real close,” Holler said. “We're wrapping up (labor) negotiations, and it's looking pretty good.”
The administrator could not divulge specifics, but said the city's six bargaining units all offered ideas on how to make up the remaining deficit. The city also found that health insurance is going up only 1 percent, compared to an expected 10 percent hike, saving $50,000, Holler said.
When negotiations are completed July 14, Assistant Finance Director Deborah Sutton “will run all the numbers and see where we shake out,” Holler said.
“It will probably be less than $100,000 (of shortfall), and we're hoping to be closer to zero,” Holler said. “Going from $1.5 million to $100,000 to $50,000 was huge, but we still don't know what the state's going to do.”
The city has budgeted for a $400,000 hit from the state of California, Holler said.
A worst-case scenario is state officials would take $550,000 to $600,000 from the city's gasoline and property taxes and by increasing fees. The best-case scenario is losing about $100,000. Several deficit plans are floating around the legislature.
Figures now are a “moving target,” he said. Holler will have more clarity when lawmakers finalize their deficit plan and he has the full numbers from employee negotiations. When he does, the final package will be brought before the City Council, probably at the July 28 meeting, Holler said.
Officials started their budget process this spring looking at a projected $1.55 million deficit. In the past few months, they sliced that to about $600,000 by cutting employee hours, about a half-dozen jobs and orders for goods and services.
“We're going to be real close,” Holler said. “We're wrapping up (labor) negotiations, and it's looking pretty good.”
The administrator could not divulge specifics, but said the city's six bargaining units all offered ideas on how to make up the remaining deficit. The city also found that health insurance is going up only 1 percent, compared to an expected 10 percent hike, saving $50,000, Holler said.
When negotiations are completed July 14, Assistant Finance Director Deborah Sutton “will run all the numbers and see where we shake out,” Holler said.
“It will probably be less than $100,000 (of shortfall), and we're hoping to be closer to zero,” Holler said. “Going from $1.5 million to $100,000 to $50,000 was huge, but we still don't know what the state's going to do.”
The city has budgeted for a $400,000 hit from the state of California, Holler said.
A worst-case scenario is state officials would take $550,000 to $600,000 from the city's gasoline and property taxes and by increasing fees. The best-case scenario is losing about $100,000. Several deficit plans are floating around the legislature.
Figures now are a “moving target,” he said. Holler will have more clarity when lawmakers finalize their deficit plan and he has the full numbers from employee negotiations. When he does, the final package will be brought before the City Council, probably at the July 28 meeting, Holler said.
To contact Senior Staff Writer Dave Moller, e-mail dmoller@theunion.com or call 477-4237.
