The three incumbent council members up for re-election were the only ones present at the Oct 22 meeting, where they received a budget update. According to Troy Brown, Budget Manager, revenues are forecast flat to decreasing, but somehow they'll be able to add $2.2 million to the reserve, bring it to over $16 million. (one of my planks)
Council members Cooper and Scherman expressed deep concern that our finances might be in trouble in the future. Cooper repeatedly said we have to start working on cost reduction now, because "it's (the economic situation) gonna get worse." He also said the downturn in the auto sales sector was going to hurt us. Does this sound familiar to what I've said repeatedly in my campaign over the last few weeks? It should, because it's almost identical. Scherman agreed with Cooper, then voluteered to give up one of her council perks to help out the budget. Ah, sweet campaign strategy at its best!
City Manager Laura Gill fielded many questions and spoke of the danger in making city revenues heavily dependent on sales tax, as Elk Grove has done. Sales tax revenue was forecast at 38% of gross revenue in the current budget and will fall very short. The question is, how much? Unfortunately, without tax increases, there are not many options other than cuts and freezes to compensate for reduced revenue. The reduction in other revenues (permits, fees, prop tax, etc., was not mentioned, but will certainly need to be addressed soon.
For several weeks now, I've been saying we need to closely watch our budget and be prepared to reduce expenditures. Suddenly the council now agrees, after spending money freely for many months and even recently approving several new positions in the city government, for which Ms. Gill was instructed to "find" the money.
It pleases me that our council has started my plan for economic stability. It's also rewarding to see them ordering some of the same steps I would to ensure our future survival. Is it too little too late?
Bob