City officials are considering various tax and fee increases to cover an expected shortage in revenue in the next fiscal year.
Ways of increasing city revenues discussed by the City Council this week included implementing a utility users tax, creating assessment districts, imposing parking taxes and increasing business license fees. Speaking to a joint session of the council, the Traffic Safety Committee, the Planning Commission and the Parks and Recreation Committee, City Manager Donald Guluzzy expressed concern over the city's practice of balancing its operating budget with general funds.
"We can't go on forever drawing on the general fund account," he said.
In the current fiscal year, the city's $5.94-million budget was $550,000 more than the city took in, he said, but the city was able to balance the budget by drawing from "a little savings account we built over our 11-year history, some prior to Proposition 13."
The account's current balance is $1.75 million, $400,000 of which is earmarked for specific uses. "We just don't collect enough to meet our expenditures for services," Guluzzy told the group. "The gap keeps getting wider and wider."