Budget Is Balanced for 1997-98 Fiscal Year
The city’s $12.5-million budget is balanced, though “somewhat precariously,” City Manager Keith Till said this week of the spending plan for fiscal 1997-98.
“The revenue stream is adequate, provided we keep tight reins on expenditures, and there are no unforeseen major emergencies,” Till said.
The single largest concern is the 11% utility tax, which represents nearly a third of general fund revenue. Southern California Edison Co. will reduce electricity rates for next fiscal year by 10% in response to deregulation of electric utilities.
As a result, Till expects a significant decrease in tax revenue.
“Fortunately, we anticipate offsetting the estimated utility tax loss through a combination of slight improvements in property tax, sales tax and several other sources,” he said.
The city’s unpopular utility tax was passed in 1993 to help close a $1.7-million budget shortfall, which led to a 22% reduction in city staff. Council members at the time had vowed to review the levy each year.
Overall, revenue this year is expected to increase by about 1.3%, while expenditures are estimated at approximately 4.5% above last year, he said.
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