Nevada City Advocate - A free news & entertainment Newspaper Serving Nevada City & Greater Nevada County: Nevada City officials say they need to make $183,000 in mid-year budget cuts

Nevada City officials say they need to make $183,000 in mid-year budget cuts
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Pat Butler on Feb 10 04:26pm
 
Nevada City needs to make $183,000 in mid-year budget cuts as a result of
shrinking sales tax collections, according to a report prepared by City Manager
Gene Albaugh and Finance Director Catrina Andes.
Nevada City officials projected the city would collect $962,000 in the fiscal
year that began on July 1. They are now projecting Nevada City will collect
$779,000 in sales tax revenue.
The information is included in the city quarterly financial update, which the
Nevada City council will review at today’s City Council meeting, which starts
at 6:30 p.m.
The report also shows that sales tax collections are down 39 percent in third
quarter of this year when compared to the same time period last year. The
steepest declines were reported in the categories of “business and industry”
and “fuel and service stations.”
In addition, sales tax collected for the voter-approved Measure S, which is
dedicated to road improvements, dropped by 20.8 percent to $127,991 in third
quarter of 2009 versus third quarter 2008.
The report also shows that the $103,553 in Transit Occupancy Tax and $254,649
in sales tax collected in the last six months are the lowest totals since the
fiscal year 2002-03.
The report concludes by saying Albaugh and Andes will be recommending budget
cuts for the city manager’s office and the police and planning departments at
the Feb. 24 City Council meeting.
The city's annual budget is around $4.1 million.