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A lean and “almost balanced” budget was passed by the Grass Valley City Council Tuesday night, the culmination of several months of fiscal sweat and tears.
The budget process for the current 2009-2010 fiscal year, which started July 1, began with a projected $1.55 million general fund shortfall. That has been whittled down to $87,000 in the past few months, according to City Administrator Dan Holler, but it hasn't been a pleasant process.
The remaining $87,000 could be made up in negotiations winding up this week with police management and general city employees, Holler said, or the deficit could even grow a bit. If so, the city will have to look to additional cuts, or dip into its reserves.
“We have to be very diligent about watching our spending and revenues now,” said Mayor Lisa Swarthout. “Hopefully, sales tax revenues will stabilize a little bit.”
The city's general fund budget is about $10 million, down from $11.7 million in 2008-2009, a reflection of dipping sales tax and property tax revenues due to the down economy. The city is now down to 108 employees, compared to 117 last year and 132 in 2007-2008, when the economy began to sour.
To make up the deficit, the city cut positions, furloughed workers and eliminated department supply requests.
The cuts to get the budget close to balanced this year included slashing $310,000 in operating costs, $135,000 when the recreation department director and programs were slashed, and $175,000 by not filling the vacated finance director and a maintenance position.
Another police officer's position was left open and hours were cut to save $96,000. Positions were shuffled in the Community Development Department for another $87,000 in savings and more than $100,000 was saved by reducing hours in other city positions.
Finally, city employees agreed to concessions and lower-than-expected health care premiums, which reduced costs an estimated $376,000.
The council also decided to keep City Hall closed on Fridays, a move made during the 2008-2009 fiscal year to shore up a $550,000 deficit.
The city has readjusted its revenue projections to anticipate dwindling sales taxes, but will still have to watch them closely, Holler said. The sales tax makes up about 41 percent of the revenue for this year's general fund budget.
Even before the revised state budget passed, city officials had already anticipated the state would borrow $400,000 in sales and property taxes this year and Holler said he didn't expect that total to grow.
“We think they're done with us,” Holler said.
To contact Senior Staff Writer Dave Moller, e-mail dmoller@theunion.com or call 477-4237.
The budget process for the current 2009-2010 fiscal year, which started July 1, began with a projected $1.55 million general fund shortfall. That has been whittled down to $87,000 in the past few months, according to City Administrator Dan Holler, but it hasn't been a pleasant process.
The remaining $87,000 could be made up in negotiations winding up this week with police management and general city employees, Holler said, or the deficit could even grow a bit. If so, the city will have to look to additional cuts, or dip into its reserves.
“We have to be very diligent about watching our spending and revenues now,” said Mayor Lisa Swarthout. “Hopefully, sales tax revenues will stabilize a little bit.”
The city's general fund budget is about $10 million, down from $11.7 million in 2008-2009, a reflection of dipping sales tax and property tax revenues due to the down economy. The city is now down to 108 employees, compared to 117 last year and 132 in 2007-2008, when the economy began to sour.
To make up the deficit, the city cut positions, furloughed workers and eliminated department supply requests.
The cuts to get the budget close to balanced this year included slashing $310,000 in operating costs, $135,000 when the recreation department director and programs were slashed, and $175,000 by not filling the vacated finance director and a maintenance position.
Another police officer's position was left open and hours were cut to save $96,000. Positions were shuffled in the Community Development Department for another $87,000 in savings and more than $100,000 was saved by reducing hours in other city positions.
Finally, city employees agreed to concessions and lower-than-expected health care premiums, which reduced costs an estimated $376,000.
The council also decided to keep City Hall closed on Fridays, a move made during the 2008-2009 fiscal year to shore up a $550,000 deficit.
The city has readjusted its revenue projections to anticipate dwindling sales taxes, but will still have to watch them closely, Holler said. The sales tax makes up about 41 percent of the revenue for this year's general fund budget.
Even before the revised state budget passed, city officials had already anticipated the state would borrow $400,000 in sales and property taxes this year and Holler said he didn't expect that total to grow.
“We think they're done with us,” Holler said.
To contact Senior Staff Writer Dave Moller, e-mail dmoller@theunion.com or call 477-4237.
