Scotts Valley approves budget

The Scotts Valley City Council approved its 2009-10 fiscal year budget Wednesday, June 17, with a caveat to revisit it after the first quarter of sales tax revenue comes in.
“I’m comfortable with approving this budget tonight; at the same time I think that it’s really important that within a couple of months that we revisit this budget,” Councilman Jim Reed said. “It’s a thing cities do especially in unusual times like this — that are this dire — to make midyear alterations to the budget.”
Scotts Valley has a $2.7 million reserve that it will use as a cushion, even while revenues decrease and expenditures remain relatively stable.
Expenditures from the city’s general fund are budgeted at $8.278 million in 2010, $7,500 less than in 2009. However, projected revenue for the city is $7.056 million, down from $7.466 million in fiscal year 2008-09. The 2.3 percent decrease in revenue is due to the economy with an estimated $168,800 decrease in sales tax revenue and a $234,800 decrease largely in construction-related services the city offers.
The city has frozen about seven full-time staff positions to make up for lost revenue from the Measure C sales tax that decreased from a half-cent to a quarter-cent this year.
Fifty-one percent of the city’s budget — more than $4 million — will be spent on police expenses. Public works expenses are the second largest expenditure at 18 percent of the budget.
“The city continues to respond in an excellent fashion in a difficult environment where we are challenged by fiscal restraints,” City Manager Steve Ando wrote to the council about the budget.
For a full look at the budget: www.scotts
valley.org.