Placerville officials say furloughs and layoffs may be necessary to close a projected $235,447 gap in the city's 2008-09 general fund budget.
Dave Warren, finance director, said during the City Council's midyear budget review Tuesday that revenues for the current fiscal year are expected to be about $976,000 below the approximately $8 million projected when the fiscal year began in July. The decrease is attributed largely to an anticipated $605,594 drop in sales tax receipts and a $156,366 decrease in revenue from vehicle code fines.
Sales tax revenues account for about 45 percent of the city's general fund budget.
The city had anticipated 2008-09 sales tax revenues would be about 7.4 percent less the previous year, due to business closures, such as Placerville Ford, and the slowing economy. But Warren said it now appears total sales tax revenue for the year will be about 15.2 percent below projections.
Revenue from recreation fees also took a hit last summer when many facilities, including the aquatics center, were forced to close for several days because of poor air quality caused by Northern California wildfires.
Expenditures for the current fiscal year are expected to be $740,680 less than budgeted.
But personnel costs account for 76 percent of general fund expenditures and likely will have to be cut to achieve additional savings, Warren said. City employees already agreed to forgo cost-of-living and other salary adjustments this year because of budget constraints.
By Cathy Locke
clocke@sacbee.com
Published: Wednesday, Feb. 11, 2009
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