The Colusa City Council last week projected an increase in tax revenue and a windfall from the American Rescue Plan Act will narrow the budget deficit they expected when they adopted the 2021-2022 budget last fall.
At a mid-year budget update on Feb. 15, Colusa Finance Director Ishrat Aziz-Khan said the city anticipates that tax revenue, approximately $3.8 million from all sources, includes about $100,000 more in sales taxes than the city first anticipated, although general fund expenses have also increased.
The city also received $724,839 from President Joe Biden’s $1.9 trillion coronavirus stimulus program, which included $26.5 million to local and tribal governments.
The City Council adopted an updated $4.9 million general fund spending plan, which shows the majority of the city’s general fund expenses will be spent on public safety, including $1.5 million for police services and $822,000 for fire services.
The police department budget includes an added $24,281 for salary and fuel increases. The fire department budget increased $34,171 for a per diem firefighter and an increase in services and supplies.
About $780,000 will be spent on administrative services and recreation; $616,000 on public works; and $586,000 on community development (engineering, planning and building, and economic development), officials said.
The economic development department expenses were reduced by $65,211 due to the elimination of the staff director position, a $48,000 savings, and a $17,000 reduction in event expenses, Aziz-Khan said. The recreation department increased $38,000 for a new position.
According to Aziz-Khan, who prepared a 10-year analysis of revenue and expenses, Colusa’s general fund revenue increased from $2.9 million in 2012 to $4.4 million in 2022. Expenses increased from $2.7 million in 2012 to $4.3 million in 2022.
The increase in 2022 tax revenue and the addition of ARPA funds eliminated the projected $251,464 general fund deficit, leaving the general fund $182,593 to the good, officials said. The city also has a general fund reserve totaling $2.27 million, which is $698,942 above the city’s policy minimum.
“That doesn’t mean we should go spend money,” Aziz-Khan said. “It means we are OK.”
The City Council last week also adopted various special fund and enterprise fund balances.
Colusa’s projected Cannabis Fund balance now stands at $1.28 million, which is slated for street improvements/grant matches.
The city’s State Law Enforcement Grand Fund balance is $12,025. Colusa’s Fire Department Strike Team Fund balance is $131,098, and will be used for future deployment costs and equipment replacement, officials said.
The Water Fund budget for 2022 is projected at $1.27 million, with a $6.13 million fund balance. The sewer fund budget is $3.37 million, with a $11 million fund balance, which included $5.95 million in reserves; $1 million in capital reserves; $1.9 collection system reserves; and $2.8 million in Wastewater Treatment Plan upgrade reserves.
The City Council, in addition to previously authorizing $106,201 from ARPA funds to pay employees bonuses (premium pay) for working during the COVID-19 pandemic, on Feb. 15 budgeted $75,000 for broadband and $150,000 for police vehicles and radio upgrade. ■