Sentinel staff report–
Although initially projecting to see a $100,000 shortfall in this year’s budget, the City of Citrus Heights is now on track to see a likely $2.9 million surplus in its originally planned $32.6 million budget.
In a mid-year update on Thursday, for the city’s fiscal year that ends June 30, Interim Administrative Services Director Bill Zenoni told the City Council that projections now show a $2.5 million increase in revenues largely from increased sales tax and building activity, motor vehicle fees, and additional funding from a state insurance pool. He also said another $1.4 million is also expected largely due to savings from unfilled staff positions.
Along with the revenue increases, however, the city has also seen an increase of around $1 million in expenses, largely from workers compensation payments and liability insurance premiums, Zenoni said. The increases in both revenues and expenses mean a net projected surplus of $2.9 million.
The city also saw a significant surplus last year, $3.6 million, despite initial projections of shortfalls and cuts to police amid the coronavirus pandemic.
With updated revenue projections, street repairs are now increased to $4.5 million per year for the next five years, Zenoni said. A financial forecast presented also shows the city’s line of credit being fully repaid by 2024, with the amount listed at $3.5 million.
Zenoni said the city is also expecting to receive its first payments for property taxes in December of this year, or January next year. He said the city will see about $6.8 million in funds from the property taxes, with half being received initially and the remaining half coming several months later.
The city has waited 25 years to be able to receive its share of property taxes, as the taxes were forfeited due to a “revenue neutrality” agreement with Sacramento County as a condition of the city incorporating in 1997.
Council members reacted positively to the report, as well as news of the city’s long-awaited receipt of its property taxes.
“These (revenue figures) tell you that the city is alive, it’s thriving, it’s vibrant,” said Councilman Bret Daniels. “There’s a lot of people out there who really want to take the time of day all the time to bash Citrus Heights, and I just want to tell you that that’s not the case. This is a good city, it’s vibrant, and we should be proud of it.”
