COLUSA, CA (MPG) – The Colusa City Council adopted a proposed $6.3 million spending plan for 2023-24 that anticipates general fund expenditures would greatly exceed revenue if not for the 1% general sales tax voters approved last November.
Colusa officials said the proposed budget is still somewhat conservative and could change by mid-year when actual revenues are better known. But, for now, new sales tax revenue is helping to cover a projected deficit.
Finance Director Ishrat Aziz-Khan said Colusa’s general fund revenue is likely to increase by $2.5 million, which includes $1.55 million in anticipated new sales taxes from Measure B.
The budget largely funds public safety, including $1.85 million for law enforcement, up from $1.68 million last year, as the Police Department was able to negotiate a 10% salary increase to better retain and attract police officers and a 15% increase to the sergeant’s salary.
The Fire Department will be funded at about $1 million, up from $903,000 last year, picking up one additional firefighter but not the requested secretary position.
Khan said fulfilling the fire department’s full request would have pushed total expenditures to about $6.5 million, which would have widened the gap.
“The budget is projected to have a $443,401 deficit without applying additional requests from the fire department,” Khan said.
Khan said the city’s 2023-24 general fund revenue includes a total of about $5.3 million from property taxes, property tax in lieu of vehicle license fees, and sales taxes.
The city will also receive about $312,000 in franchise fees, up about $40,000 over last year, and $268,000 from business licenses and building permits.
The city also receives revenue from other government agencies ($68,500); fines and forfeitures ($9,500); interest income ($20,000); property rents and leases ($37,000); and miscellaneous revenues, fees, and charges ($250,000).
On the expenditure side, Khan said personnel expenses have increased, as did liability and property insurance.
The City Council on June 18 agreed to fund a code enforcement officer position, which will be covered by a Proposition 64 grant. The budget also funds a grant writer and city planner position, Khan said.
The council proposes to spend $162,836 on grant writing and economic development; $292,636 for planning; $115,671 for building; $62,150 for engineering; and $276,642 for parks. The council also included a $7,604 increase, from $173,135 to $180,739, for the general fund’s contribution to the City Manager’s department for a salary increase and miscellaneous supplies. Enterprise funds, such as sewer and water, pick up about 66 percent of the cost for the city manager, city council, finance department, city clerk, and city treasurer. Enterprise funds also pick up 10 percent of the grant writer.
The city anticipates spending about $6,236 less on recreations this year (due to the decrease in city-sponsored events), while retaining the recreation coordinator position and recreation programs.
While the city has allocated $638,660 for streets, up from $147,438 in the 2022-2023 budget, City officials said they were comfortable using revenue from Measure B to boost public safety, which was part of their request to voters.
“Measure B was passed as a general tax, not a special tax,” said Mayor Greg Ponciano. “There are really no real restrictions on what we can spend it on, but we agreed – as part of that – to have an oversight committee to keep us on task.”
Measure B increased sales taxes from 7.25 percent to $8.25 percent for a four-year period.
Voters also approved a permanent special countywide sales tax (Measure A), which bumped sales taxes .5 percent for ground ambulance services, bringing the total sales taxes collected on taxable goods and services sold in the City of Colusa to 8.5%.
City officials said for the local tax increase to be voted on again in 2026, they plan to spend the proceeds on the services promised, including improving parks and trees.
Although the proposed budget incorporates revenue from the tax increase to cover deficit spending, both Khan and City Manager Jesse Cain said by the end of the fiscal year, most of the deficit will be made up by actual revenue, a reduction in spending, or a combination of both. H