Nevada City to host budget workshop Wednesday
Nevada City staff will be hosting a workshop at 9 a.m. Wednesday at City Hall so interested residents will have a chance to join council members to discuss a proposed draft budget for the next fiscal year.
Assistant City Manager Catrina Olson will present a general overview of the city budget during the meeting, and go over the budget summary of revenues and expenditures for the general fund, Measure L, water fund and wastewater fund.
According to a staff report, the city has experienced a “slow but improved” financial condition in general fund balance over the last four fiscal years. Proposed total revenue for the 2016 to 2017 fiscal year is $3.54 million, which is a 3.6 percent increase from the adopted budget of the 2015-2016 fiscal year, which puts that figure at $3.42 million.
“Primarily the increase is associated to the net projected upticks in collections in property taxes, transient occupancy taxes, and businesses licenses,” reads a staff report on the proposed budget.
The passage of the special tax Measure L has also helped the city set aside money for general fund reserves, in addition to paying for infrastructure improvements and the retention of full-time city management positions.
The general fund operating expenditure for the next fiscal year is projected at $3.93 million, which is a 7 percent increase from the adopted budget last year of $3.69 million. This increase has to do with the addition of two firefighters budgeted in the general fund. However, this expense will be offset by a transfer of $101,000 funds from Measure L, officials said.
The largest revenue source for the general fund remains property tax, which is projected at $1.15 million for the next fiscal year, a 2.4 percent increase over the property tax figure from the adopted budget of this fiscal year.
The city continues to face challenges associated with understaffing in the upcoming year. According to the staff report, in order to make up for the increase in costs as a result of hiring three new firefighters, the Finance and Administration Department has to hold a vacancy open. The city also continues to be involved in a litigation case regarding bed and breakfast establishments, which is expected to “impose significant legal expenses to the city.”
The city water fund is also facing some challenges of its own. Olson said the reduction in city water revenues as a result of the water conservation effort has created a strain on the water fund, which already has a negative balance.
“The conservation is good, we need to be doing that,” said Olson, “but as a result we are facing reduced revenue in that fund.”
According to staff reports, water fund expenditures are expected to exceed revenues by $16,144 for 2016-2017.
The wastewater fund is experiencing a better financial outlook, Olson said.
Olson said the city will be doing a condition assessment on wastewater and water operations, which will help the city develop a capital improvement plan.
For more information, please visit: http://nevadacityca.gov/
To contact Staff Writer Teresa Yinmeng Liu, please email email@example.com, or call 530-477-4236.
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