Sentinel staff report–
Citrus Heights City Council members on Thursday night unanimously voted to approve a $12 million revolving line of credit, making it the first time the city has ever authorized incurring debt.
City Manager Christopher Boyd said the funding will put the city in a position “to invest in our community for return” and also allow “a nimble and flexible way” to get by until the city receives a long-anticipated boost from property tax revenue in four years.
The city’s share of property taxes is currently about $5.6 million, but as part of a 25-year “revenue neutrality” agreement with Sacramento County, Citrus Heights has reluctantly had to fork those funds over to the county each year — a condition imposed to allow the city to incorporate in 1997. After an unsuccessful attempt to strike a deal with the county to get early access to the funds, the city pursued a line of credit as the most “cost effective” alternative.
According to a 10-year projection presented to the council, without the line of credit, the city’s current reserves of $5.3 million were projected to dwindle to a little over $300,000 by fiscal year 2021-22, before increasing to more than $4 million beginning the following fiscal year after the end of revenue neutrality. An updated projection, accounting for the line of credit being used, showed reserves only dropping to $2.9 million before rising to almost $5 million the following year…
When former Citrus Heights City Manager Henry Tingle retired two years ago, incoming City Manager Christopher Boyd assured him of one thing: “We’ll never go into debt.”
That quote and many others were included in an 18-minute video tribute to the outgoing city manager during his retirement ceremony in 2016. Known as “Tightwad Tingle” for his fiscally conservative policies and operating the city debt-free during his 17-year tenure as manager, the video showcases how the City of Citrus Heights operated with a “pay as you go” philosophy under his leadership, while building up millions of dollars in reserves and still making capital improvements like the new Community Center on Fountain Square Drive, completing the first phase of major roadway improvements on Auburn Boulevard from Sylvan Corners to Rusch Park, and most recently constructing the new $21 million city hall — a project that would have cost taxpayers millions more in interest payments if the money had been borrowed.
Now, the City Council is poised to vote at 6 p.m. tonight — for the first time in its 21-year history — for a $12 million revolving line of credit in order to finance “anticipated operating and capital funding needs for the next four fiscal years until property tax revenues become available,” according to a city staff report. For perspective, that’s about one-third of the city’s $36 million General Fund budget…
Sentinel staff report–
The race for three seats on the Citrus Heights City Council appears to be decided, after more results were released by elections officials on Friday afternoon.
Porsche Middleton, who currently serves as a Citrus Heights Planning Commissioner, pulled ahead by several hundred more votes to solidify her place in third, earning her a seat on the City Council along with Mayor Steve Miller and Vice Mayor Jeannie Bruins, who both won their campaigns for re-election.
Al Fox, who was appointed to the City Council following the death of Councilman Mel Turner in 2017, told The Sentinel he won’t be conceding until the final results are posted, which will happen before the election is certified on Dec. 6th. He and Middleton are separated by about 900 votes, or 2%, as of the latest vote count.
“I think there’s no question that…
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