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| City enters tighter economic times |
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| Written by John Saiz | Patterson Irrigator | |
| Friday, 06 June 2008 | |
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Patterson’s city budget is taking a hit this year following a nationwide economic slowdown. City revenues are closely linked to declining sales and property taxes, and decreased money from the state is only adding to the problem. Patterson City Council got a glimpse at the details Tuesday, when city employees declared that, for the first time in recent memory, the council is on track to spend more from its general fund then it has taken in. “It’s going to be a bumpy ride,” Finance Director Margaret Souza said. In the coming fiscal year, the City Council will spend $5,259 more than it has collected for the general fund, the only pot of money council members have complete control over. About $9.4 million remains in the general fund. That deficit would have jumped to about $850,000 if the finance department had used the same accounting method it used in previous years. Instead, city employees decided to count revenue collected last year in this year’s budget, if the money will be spent this year, City Manager Cleve Morris explained in a letter to the council. For example, Souza said the council authorized the purchase of a ladder truck for the fire department last year for about $580,000. The revenues to pay for the truck were included in last year’s budget, but the expenditure is expected to occur in this budget year. So the finance department included the revenues in this year’s budget, too, shrinking the general-fund deficit from six figures to four. “This year, we’re proposing we carry over both revenues and expenses,” Morris said. Patterson’s Mayor Becky Campo said she’s plans to review staffing costs in order to find savings. Specifically, she said there would be a review of the pay for performance program the city has in place. The program sets up scheduled pay raises for city employees based on achieving specific goals. “Before we look at cutting services, we’ll look at (staffing costs,)” Campo said. “We’ve been generous. This is the time to be conservative.” The tighter financial times are a symptom of fewer taxes collected and fewer state dollars delivered. The money the city collected from sales tax dropped from $3.1 million last year to $2.6 million. As home prices drop, the city also sees less property tax revenue. With all of California going through a similar lean period, the state government is looking to withhold money from local jurisdictions, Souza said. “The state tends to balance its budget on the backs of cities,” she said. Revenues aren’t expected to pick up again until home prices go up and people start shopping more. “At best, it’s a bumpy ride, and we don’t know how long or where it’s going,” Souza said. To reach John Saiz at the Irrigator, call 892-6187 or e-mail him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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