Reports Indicate Budget Is on Track

Ventura’s $51-million budget is on track with projections made last summer, according to financial reports to be presented tonight to the City Council.

At the midpoint of fiscal year 1995-96, the budget is expected to be short by only $12,285, a small amount given the city’s sizable revenues and expenditures.

Although the report indicates city finances are about even with projections made last summer, it shows that the city is not bringing in any new revenue.

And with ambitious, expensive projects on the horizon, city leaders could be limited in what they can approve.

“We are basically going to be holding steady, which is not real good when you are adding programs or wanting to do new things,” budget manager Mike Solomon said. “To have a vibrant community, you have got to continue to be trying to enhance your revenues.”

So far, sales tax revenue has increased by $198,000 over estimates from the start of the fiscal year, and motor vehicle license fees are up by $128,000. Both are attributed to increased car sales, officials said.

But property taxes are down by $238,645, and utility taxes are lagging by $313,000.

The decline in property taxes has been caused by a glut of new housing projects in the city’s east end that have lowered the value of older homes in other parts of the city, Solomon said.

“There has been a flood of new houses on the east end,” Solomon said. “That hurts older homes because people are saying, ‘Why should I spent $200,000 on that when I can buy a brand new one.’ ”

The decrease in utility taxes is attributed to the impact of deregulation on service rates as well as utility billing discrepancies, Solomon wrote in his report to the council. An audit is going to be conducted to investigate those discrepancies, he said.