At its council meeting on Tuesday, the City of Grass Valley will discuss more budget woes, this time brought on the state’s financial problems.
This includes the loss of $54,112 in vehicle license fee revenue to the city, as well as the ongoing threat of shuttering redevelopment agencies, as discussed previously.
It comes as the city faces its own revenue decline on the local front — making it the “ham in a proverbial sandwich” of local and state revenue shortfalls. Or a “cluster ‘you know what’” if you prefer.
“This was not anticipated and will negatively affect the budget,” the memo said, referring to the lost vehicle license revenue. Now the fees eamarked for the city are being used to fund a portion of the state public safety program under the newly adopted state budget.
As for the redevelopment agencies, a League of California of Cities lawsuit to challenge the decision to shutter redevelopment agencies will be filed “in the next few weeks,” according to the memo.
“We will not know the final impact for a while yet,” City Administrator Dan Holler said in the memo.
In addition, the council also is expected to approve a $10,000 annual expenditure to the county Economic Rescource Council, the same as last year. The amounts going to the Chamber and Downtown Association are being cut to $10,000 from $12,500 for each group, however.
More information is here.
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Jeff,
There are two ways to look at the $54K in car tax money you mentioned.
On the one hand it is money lost to the city making it more difficult to keep paying those high salaries that you post occasionally.
On the other hand it is a little bit more money that the struggling families of Grass Valley will be able to keep and help them make their budget in these tough economic times.
John
There are very few “high salaries” left at the city. The City Administrator has assumed the duties of the Finance Manager, and the Human Resource Manager, who did risk management duties, workers comp and safety among other things. In December he will also assume the duties of the Community Development Director(retiring) who is the buiding department head. Hope and pray that he doesn’t get hit by a bus!
Ben,
Perhaps I am confusing Grass Valley with the county but Jeff had a list up not to long ago that still looked pretty rich to all those unemployed folks out there.
John