CAMARILLO : Tax Revenues Fall Below Projections
Camarillo’s first-quarter tax revenues fell short of projections by 3.7% or $352,000, the city manager told the City Council Wednesday.
City Manager J. William Little blamed the shortfall on a slumping economy, which resulted in reduced sales tax revenues and fewer building permits.
The city collected $365,000 less in sales taxes and $80,000 less in building fees for the quarter than was forecast, Little said. But the losses were partly compensated by an expanded sales tax base from a new state tax on snacks and a higher share of property taxes, he said.
With $1 million of the city’s $9.58-million budget set aside for reserves, Little said he did not expect the shortfall to create a crisis.
“We’re not talking a deficit, but a revenue shortfall,” Little said.
But with the speed of an economic recovery still uncertain, the council decided to have its finance committee and city staff prepare contingency plans if the situation worsens.
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