St. Helena cuts $250,000 from budget
By JESSE DUARTE
For the Register
October 31st, 2009
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The St. Helena City Council cut roughly $250,000 out of the city’s general fund this week to tide the city over until officials have a better idea of how the slumping economy will affect revenues.
The cuts cover all city departments, but Finance Director Karen Scalabrini said they won’t hurt city services.
There were no layoffs and, contrary to what was proposed at the Jan. 13 council meeting, no reductions in library hours.
The council extended the city’s hiring freeze until officials have more specific information about how the economic downturn will affect sales taxes and transient occupancy taxes, which together make up 43 percent of the city’s general fund.
According to anecdotal reports, St. Helena businesses saw a sharp decrease in sales starting in October. But hard figures are still unavailable.
Sales tax figures lag a financial quarter behind, so city staff plan to poll local businesses to get a rough idea of how much sales taxes have decreased. By mid-February, hotel tax revenues for January will be available.
Depending on how those figures look, the council might make more cuts when members look at the budget again on Feb. 24, officials said.
In any case, Scalabrini said, putting together next year’s budget “will be much more difficult” than this initial round of cuts.
Library representatives were grateful that the library was spared. Library use has increased since the economic downturn, said Trustee Bonnie Long.
The council approved these cuts:
• A sergeant upgrade at the police department: $11,300
• Savings from a position in the planning department that was vacant for part of the fiscal year: $9,500
• Savings from a vacancy in the finance department: $2,900
• Eliminating funding for a school resource officer at the police department: $50,000
• Savings from a vacant library clerk position: $9,000
• Eliminating the general fund contribution to the sales tax set-aside: $50,000
• Reducing the general fund contribution to the flood control project (won’t affect construction): $85,000
• Reducing the utility budget in the parks and recreation department (less watering at parks): $20,000
• Eliminating a software purchase: $5,500
• Reducing equipment purchase for the city garage: $1,500.ไทค
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