Gov’t shutdown should not affect city

By From page A1 | October 09, 2013

“We don’t anticipate any real effect on the city from the government shutdown,” said City Manager Cleve Morris. “We have federal money coming in, but it’s a COPS grant and other funding for transportation projects has already been appropriated, so we don’t feel there will be any major effect.”

“The city participated in a phone conference with representatives from the White House,” said City Financial Director Dave Warren. The conference was coordinated by the League of California Cities to answer questions cities had about the effects of the federal shutdown.

“Some of our projects receive federal funding,” said Warren, “like transportation projects such as the Western Placerville Interchanges Project and the widening of the Placerville Drive Bridge and the Blairs Lane Bridge. We also receive money for public safety through the COPS grant.”

The COPS grant is administered by the Department of Justice, one of the few federal departments not shut down and the money for the three-year grant has already been appropriated so there will be no interruption of funds, said Warren.

The transportation projects in the area will also continue to be funded as the money for the projects was appropriated years ago and the city applies to Caltrans for reimbursement.

The city of Placerville receives 52 percent of its general fund revenue from sale tax, said Warren.”We don’t anticipate any direct effect on the city, but, depending on how long the government shutdown lasts, there could be indirect effects.”

If the shutdown lasts 2-3 weeks, Warren said the effects should be negligible, but if it lasts longer, the effect on consumer spending may be significant. “Tourism could be affected if people lose faith in the economy and stop spending,” he said. “We’ll have to wait and see.”


Wendy Schultz

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