Nevada City officials say they need to make $183,000 in mid-year budget cuts

Photo by Bob Lickter Nevada City Manager Gene Albaugh

Nevada City officials projected the city would collect $962,000 in sales tax revenue in the fiscal year that began on July 1. They are now projecting the city will collect $779,000 based upon sales tax collected in the past six months.

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.