The Colusa City Council failed to adopt a proposed budget for 2021-22 on Tuesday pending more information and discussion on massive staff reductions needed to close a $658,000 shortfall.
City officials, following a special workshop, said they anticipate the city will still have more expenses than revenue in the coming year – even with the cuts – despite increases in sales tax revenue from higher prices on goods and gasoline.
In order to overcome the deficit, Finance Director Ishrat Aziz-Kahn said city staff stripped entirely the positions that the City Council approved last year and those that were requested by department heads.
” Those positions include the police department budgeted position and the one in which an employee retired,” Aziz-Kahn said. ” So the budget does not include these two positions. It does not include the financial analyst position for the finance department. It does not have the code enforcement position. It does not have the per-diem position requested from the fire department. The street also had a position budgeted. We are thinking of replacing it in the future, but this budget does not include that either.
The citys general fund budget, with the staff reductions, predicts $4.5 million in anticipated spending, above the $4.2 million in revenue, leaving a shortfall of about $251,000.
To offset some of the costs, the city also plans to reduce professional services in the Planning Department by $7,011 and absorb the remaining $24,549 that was left from the previous year.
Aziz-Khan said the city anticipates a 3 percent increase in health, dental, and vision insurance and a $79,839 increase in the unfunded pension liability.
The budget also calls for the establishment of an Economic Development Department, with a budget of $253,105, which city staff plans to offset with $109,000 in donations and/or event revenue. The economic development position of $153,00 was already budgeted, but was funded previously under the city managers budget, thereby adding no additional impact to the 2021-2022 general fund, Aziz-Khan said.
The city also approved a $61,479 budget for new recreation programs.
Khan said she anticipates increases in tax revenue, licenses and permits, services charges, and other revenue, but decreases in franchise fees, interest and rental fees, and fines and forfeitures, although her budget predictions are low estimates.
” I like to try and use a very conservative approach because its better to be over by mid-year than under,” Aziz-Khan said. ” Its better to have more in your pocket than saying ” OK, how am I going to pay my bills.
The city currently has about $2.3 million in undesignated reserves, which Aziz-Khan said was healthy and anticipates a $855,266 balance in the cannabis fund by the end of the budget year.
Aziz-Khan said she also anticipates a projected water fund balance of $5.9 million by June 2022 and a $12.7 million sewer fund balance.
The sewer fund contains a capital reserve of $1 million, a collection system reserve of $1.9 million, and a wastewater treatment plant upgrade reserve of $2.8 million.
The Pool/Tree/Park Improvement District anticipated $268,400 in revenue for 2021-22, with $271,012 budgeted as expenditures. The fund also contains the $177,000 Prop 68 allocation for the construction of a splash pad at AB Davison Park.
Colusa officials also anticipate a $1.4 million allocation from the $1.9 trillion American Rescue Plan stimulus package for COVID-19 relief, which the City Council must approve as per the requirements of the state, Aziz-Khan said. The city can use the funds to address the negative economic impacts caused by the public health emergency, replace lost public sector revenue, invest in water, sewer, and broadband infrastructure, and assist businesses impacted by the pandemic.
Aziz-Khan said the allocation was not included in the budget but will be presented to the council in the near future. The council must allocate the funds by December 2024 and spend the funds by December 2026, Aziz-Khan said.
The City Council agreed to postpone the adoption of the proposed budget to a regular meeting on Aug. 2, at which time Councilwoman Denise Conrado asked for the Fire Department position to be discussed.
The council, at the June 15 meeting, pushed the request to the July 20 meeting so all five members could be present. However, the agenda for the regular meeting that followed the budget workshop, removed the item because city staff made the decision to deny the request to help reduce the budget shortfall.
Fire Chief Logan Conley pleaded during the regular meeting to reconsider.
He said the current staffing level at the fire department is not sustainable and jeopardizes the citys ability to respond to Strike Team calls, which typically fuels the departments budget for the purchase of equipment, including fire engines.
” We all participate in Strike Team,” Conley said. ” If we let them down, we will not be called again…Please hear me; we need help.” –