Wednesday, April 23, 2014

City budget doing ‘okay’

From page A1 | July 01, 2013 | 8 Comments

“We’re still not out of the woods, but we’re doing okay,” said City of Placerville Finance Director Dave Warren, speaking to the Placerville City Council about the city’s 2013-2014 budget.

The 2013-2014 Operating and Capital Improvement Program Budget was approved for adoption at the June 25 City Council meeting with a 5-0 vote. The balanced budget totals out at $16,459,277 and includes $906,300 in capital improvement expenditures.

The city’s Budget Team developed both the Operating Budget and the Capital Improvement Program Budget over a six-month period which included workshops and public hearings.

The Capital Improvement Project Budget is a multi-year document. Budgeted capital improvement projects include restoration of the Lions Park outfield; repair of Town Hall’s frontage sign; Pavement Management System update; pressure regulator station replacements on Cedar Ravine, Wiltse Road, Ridge Court and Schnell School Road; and Sierra Tank bypass and a water line replacement in the Coloma/Conrad/Cottage Street area.

Warren reviewed the city’s current and forecasted financial position before presenting the proposed budget at the June 11 Placerville City Council meeting. Unemployment rates in Placerville dropped from 16.4 percent to 12.8 over the past year, a sizable drop but still much higher than the state and local region rate. In eight out of the past 12 months, the residential sale price in the greater Placerville area was higher than 2011-2012  and so was the number of actual sales.”We are heading in the right direction,” said Warren.

Sales tax revenue, 52 percent of the city’s revenue,  is a mixed bag, said Warren. “We’ve had consistent growth in all areas in the last few quarters, except for  sales of  building materials and farm implements which is down,” he said.

Some of the city’s revenue funds, Measure J, and the downtown parking district revenues are of concern, according to Warren. Downtown parking district revenues are not covering the actual cost of operating the district and so no funds are being set aside for the maintenance and upkeep of parking structures and lots.

“We recommend the city reconvene the parking committee to evaluate the parking district operation and capital operating needs and make recommendations to the council,” said Warren.

The Measure J fund, a percentage of the city sales tax which funds salary and benefits for public safety employees, is balanced due to modest revenue increases and negotiated benefit concessions and the infusion of a grant obtained by city staff.” If sales tax revenues continue to improve, Measure J should remain in a positive position,” stated City Manager Cleve Morris in the budget document.

The first full loan $1,528,631 payment for Hangtown Water Treatment Plant is due in September and the Sewer Enterprise Fund Budget shows the payment being made with $886,863 from net operating revenues and $641,768 from the Rate Stabilization Reserve. The use of the Rate Stabilization Reserve funds is planned to smooth future rate increases over the next few years until sewer rates are incrementally adjusted to achieve 100 percent funding of the loan payment from operating revenues.

Measure H funds are being used to continue the sewer charge discount program through September and fund more than seven sewer and water projects. The Measure H Committee will review the sewer charge discount program this fall and make recommendations for any changes to the city council.

The Operating Budget also begins a two-year process of reducing the mandatory time off that city employees have experienced for several years as a cost savings, but maintains the 10 percent salary reduction and freezing of most positions.

“We are delivering about the same level of service as in the 2006/2007 Fiscal Year, with 35 percent less resources,” said Warren.


Discussion | 8 comments

  • EvelynJune 30, 2013 - 11:59 am

    Regarding the upturn in residential sales prices, the recovery may be more apparent than real. Consider this - "'Shadow REO': As Many as 90% of Foreclosed Properties Held Off the Market, Estimates Suggest"

    Reply | Report abusive comment
  • Fran DuChampJune 30, 2013 - 3:22 pm

    lololol..."okay"...interesting description of a budget. Sure we're mom--nothings wrong--enjoy your vacation--um gotta go now (because the city is going down.)

    Reply | Report abusive comment
  • JimBoJune 30, 2013 - 7:25 pm

    If you believe this, I have a $1.2 Million Dollar Round-A-bout Grant for you!

    Reply | Report abusive comment
  • cookie65July 01, 2013 - 6:47 am

    Evelyn, a good friend of mine is in the property management business, He manages hundreds of properties. Occasionally he will sell a property for a clients. It isn't his mainstay so he only does it for bigger clients. Over the last 2 months he listed 3 houses for sale in the Sacramento area and all three of them sold within two days with all-cash offers for the full list price. The buyers didn't even look at the houses. They are all-cash investors scooping up properties and NOT families and working stiffs driving the real estate market. All 3 of the houses were rentals just changing hands and landlords. One of them needed carpet and paint and the buyer/s did not care. The real estate market is being carried along by people who are not owner/occupied sales. Even the short sales are being snatched up by investors.

    Reply | Report abusive comment
  • EvelynJuly 01, 2013 - 7:31 am

    Cookie: Interesting. Possibly the situation is that investors with spare cash that they don't want in the bank or stock market, etc., are looking for anything with REAL value.

    Reply | Report abusive comment
  • EvelynJuly 01, 2013 - 7:33 am

    . . . and I think it's premature to declare an economic recovery or housing turnaround. Governing authorities should not be forecasting based on such assumptions.

    Reply | Report abusive comment
  • Phil VeerkampJuly 01, 2013 - 8:18 am

    Evelyn, this is Bernanke's QE#? money looking for a "home."

    Reply | Report abusive comment
  • JimBoJuly 01, 2013 - 8:03 pm

    Let me see....One Round-A-Bout Gift of $1.2 million from SACOG, was it a $1 million or $2 million Gift from the County to add onramps to the Bridge to No where aka. Briggs Court House? Jacking up Sewer Rates on the elderly so they have to choose between eating, heating and flushing...PRICELESS!

    Reply | Report abusive comment


Herard over the back fence: Try fishing at Wakamatsu

By Bob Billingsley | From Page: B1

Downtown group coordinates painting, awnings

By Wendy Schultz | From Page: A1

More mountain lion sightings reported

By Dawn Hodson | From Page: A1, 8 Comments

Supervisor Nutting trial begins

By Cole Mayer | From Page: A1, 102 Comments | Gallery

Sanford murder case to jury

By Cole Mayer | From Page: A1 | Gallery

Gearing tax questions to correct office saves time

By Treasurer-Tax Collector | From Page: A3



My turn: More than a buzzword

By Special to the Democrat | From Page: A4, 66 Comments

Building restored

By Mountain Democrat | From Page: A4

Outstanding dog

By Mountain Democrat | From Page: A4



National Day of Prayer

By Letters to the Editor | From Page: A5, 5 Comments

‘Parents, be afraid’ letter

By Letters to the Editor | From Page: A5, 44 Comments

Ukranian situation

By Letters to the Editor | From Page: A5, 5 Comments


By Letters to the Editor | From Page: A5, 11 Comments

Altshuler framing

By Letters to the Editor | From Page: A5, 9 Comments



Pitching the ‘Root’ cause of Trojans’ victory

By Mike Bush | From Page: A6 | Gallery

Pedal power at the forefront next month

By Jerry Heinzer | From Page: A6 | Gallery

Outside with Charlie: Transitioning

By Charlie Ferris | From Page: A6

Sports Scene: April 22, 2014

By Democrat Staff | From Page: A7

Roundup: April 22, 2014

By Democrat Staff | From Page: A7 | Gallery



4-H’ers star at showcase

By Dawn Hodson | From Page: B1 | Gallery

At a glance: Look for fireballs

By Mimi Escabar | From Page: B2, 1 Comment

Authors to share their stories

By Pat Lakey | From Page: B2, 2 Comments

Church to host human trafficking conference

By Pollock Pines | From Page: B3

Grow For It! Flower of Easter

By Barbara Schuchart | From Page: B5



Crime Log: April 1-3

By Cole Mayer | From Page: A2

Weather stats 4-22-14

By Michael Raffety | From Page: A2

Building permits 4/7-11/2014

By Michael Raffety | From Page: A2, 1 Comment



Bobby Lloyd Bridges

By Contributor | From Page: A2

Harry Frank Harper

By Contributor | From Page: A2, 6 Comments

Marion “Wayne” Griswold

By Contributor | From Page: A2


Real Estate




By Contributor | From Page: A8

New York Times Crossword

By Contributor | From Page: A8

Flying McCoys

By Contributor | From Page: A8

Speed Bump

By Contributor | From Page: A8


By Contributor | From Page: A8

Horoscope, Thursday, April 24, 2014

By Contributor | From Page: A8

Horoscope, Wednesday, April 23, 2014

By Contributor | From Page: A8

Working It Out

By Contributor | From Page: A8

TV Listings

By Contributor | From Page: A8


By Contributor | From Page: A8


By Contributor | From Page: A8