A tight budget year ahead for Grass Valley | TheUnion.com

A tight budget year ahead for Grass Valley

A perfect storm of city expenses including a costly ongoing lawsuit, sewer treatment plant upgrades and road improvements are making for a tight Grass Valley budget.

The estimated $12 million budget which is set for release Thursday is expected to include leaving a few currently vacant public works and police positions open. The 2007-08 budget is expected to focus more on long neglected road and general infrastructure improvements than previous budgets, said Interim City Administrator Jeff Foltz, who recently outlined his budget plans.

Foltz is proposing the city take a different approach than previous budgets by concentrating on setting aside funds for contingencies initially instead of counting on money being left over at the end of the budget year.

Grass Valley’s lawsuit with Denver-based Newmont Mining Corp. already has cost the city more than $1.3 million in legal and related fees, slashing the city’s general fund balance, which is used for such contingencies, to less than $2 million. The lawsuit is related to city’s treatment of metal-laden water from an abandoned mine owned by the company.

Expected declines in property and sales tax revenue also could hurt the city’s budget picture as well, Foltz said.

Budget hearings are scheduled to begin 7 p.m. June 12 in the City Council chambers at Grass Valley City Hall, 125 E. Main St.


To contact Staff Writer Greg Moberly, e-mail gregm@theunion.com or call 477-4234.

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