Council: Nevada City’s finances leveling off (Video)
October 12, 2012
Finances took center stage Wednesday night at the Nevada City Council meeting where elected officials examined numbers from two fiscal quarters and discussed the city's sales tax increase on the November ballot.
Council reviewed the third- and fourth-quarter financial reports from fiscal year 2011-12 thanks to a presentation by finance director Catrina Olson.
As of June 30, the city had $2.26 million in cash on hand and reduced its long-term debt from $386,151 June 30, 2011, to $163,738 at that same time this year.
"Cash flow is different from fund balance," Olson said. "Our fund balance still needs some work."
Overall, the city had $3.96 million in total expenditures, which was $115,000 less than the anticipated budget thanks in large part to a $78,300 decrease to city departments' expenditures.
"There has been a decrease in expenditures in all departments," Olsen said. "I would say all the departments worked really hard to keep themselves under budget."
General funds as of June 30 were $3.14 million, which is about $10,000 less than the same time last year.
However, general fund expenditures outpaced revenues by more than $22,000.
There were significant increases in the area of sales and transient occupancy taxes, franchise fees and other revenues; however, those were offset by a $46,000 reduction in property taxes and nearly $250,000 in grants, Olson said.
One sign of fiscal self-reliance is Olson's optimistic forecast that the city may no longer need to get annual advances against anticipated property tax revenue to cover capital projects, as it has done for the last five years, Olson said.
"It is nice to see we are leveling off here," Councilwoman Sally Harris said. "We've been through the worst of the recession it appears"
Still, fund balances are weak, Olson noted, and the city has no emergency reserves.
Should any business' sales tax revenue or any other budget source reduce, the city would feel the ramifications, Olson warned.
Nonetheless, Olson anticipated that revenues would match expenditures for fiscal year 2012-13.
"We're flat. We're functioning and keeping our expenditures and revenues balanced right now," she said.
"We're still in a flat economic environment."
To contact Staff Writer Christopher Rosacker, email email@example.com or call (530) 477-4236.