Unexpected expenses affect Nevada City’s bottom line
Nevada City spent over three quarters of a million dollars more than it expected during the 2016-17 fiscal year, leading its city council to approve changes to the general fund budget.
A portion of the extra money the city spent — $868,500 in total — was offset by an increase in revenue, city staff said Wednesday night.
The original budget projected city revenue would be $193,000 higher than expenditures for 2016-17. With the adjustments, however, expenditures are now higher than revenue by $302,000.
Interim City Manager Catrina Olson said the shortcoming will affect the city’s general fund balance. At the end of 2015-16, there was a balance of $1.57 million in the fund, she said, noting that she has not yet finished calculating the total budget for 2016-17.
In total, the city’s revenue — originally projected at $3.74 million — is now $372,500 higher for fiscal year 2016-17.
The city made an extra $49,000 in property taxes, $25,000 in transient occupancy taxes, $37,000 in claim reimbursements from workers compensation and liability pools, and $88,000 from the fire department’s participation in strike teams.
On the expense side, a staff report shows the parks and recreation department spent an extra $450,000 for unexpected expenses associated with maintaining the city’s open space and for purchasing a property at 425 Nimrod Street.
Parks and Recreation Supervisor Dawn Zydonis said the city had been planning to purchase the Nimrod property for years. She called it an “island” of land within Pioneer Park that the city previously didn’t own. The property owners approached city staff last year and said they were ready to sell.
Zydonis said the city doesn’t have any formal plans for what it will do with the property, but said public input will likely be solicited to determine the best use.
The department also spent extra money for tree removal not covered by a Cal Fire grant, Zydonis said.
The fire department spent $99,000 more than it originally expected for salaries, vehicle repair and maintenance during the 2016-2017 fiscal year. Olson said the extra salary expenses paid for overtime hours for firefighters joining state strike teams, but noted that money was refunded by the state.
The police department spent an extra $66,000 for salaries and workers’ compensation.
The public works department spent an extra $80,000 for unexpected outside services and street repair not covered by tax-increasing ballot measures or gas tax revenue.
The city was projected to spend $3.56 million during fiscal year 2016-17, but the total additional expenses increased that spending to $4.42 million, according to a staff report.
To contact Staff Writer Matthew Pera, email email@example.com or call 530-477-4231.
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