By Tim Schaefer–
Many of you know that I ran for office in 2020 because I was deeply concerned about the City’s finances. At the time, the City had taken on debt and followed recommendations from the former City Manager. While that approach is not uncommon, it left Citrus Heights in a much less stable financial position. Since that time a new City Manager was hired, he hired an excellent financial director that changed, our budget assumptions and brought the City back to stable footing.
I often remind myself that the City’s money comes from you—from the hard work of Citrus Heights residents. We as your City Council can never forget that we are trusted stewards of
this money.
Several cities in Sacramento County are facing structural deficits, each for its own reasons. Local governments must balance their budgets; the federal government is the only level of government legally permitted to pass a budget with a deficit.
Some cities in the region have issued municipal bonds to pay for infrastructure. This can reduce pressure on the general fund, but bonds are still a costly way to finance projects. Municipal bonds can be attractive investments exempt from federal income tax, with good stability for investors, so clearly, they are not the same as a parcel tax (also called bonds). A parcel tax (bond) is an assessment on real property and requires voter approval. Citrus Heights does not issue general municipal bonds.
The City’s General Fund reserves also deserve context. This is not a “rainy day fund.”
As City Manager Ash Feeney explains in the Budget in Brief, the reserves include money for planned Capital Improvement Program projects that have not yet been allocated. It’s like saving for a new roof: most families would not expect to pay for a major repair from a single month’s household budget.
Another portion is set aside to help the City through future economic downturns. This is not a warning that Citrus Heights is in financial trouble – we are not. But it is prudent to have a cushion for unexpected challenges, just as a family might save for an emergency.
The City has $33 million in reserves—that is less than 8.5 months of annual expenses. Some have suggested using those funds to hire more police officers, raise staff salaries, and pay for other ongoing expenses, but that use would consume that resource very quickly, and it would take years to rebuild.
Financial reserves are meant to provide stability, not to cover ongoing regular expenses.
The reason that I felt that this is the time to bring this message to you is that I wanted you to know after the election passed, that I am not up for re-election until 2028, My motive for this letter is to convey that you are top of mind for me every day with every meeting and every discussion.
If you are a resident, a business owner, or an employee of the City, I welcome a request to meet at any time or place, I am ready to listen.
The City’s Budget in Brief can be viewed here.
Sincerely,
Citrus Heights City Council Member, Tim Schaefer
tschaefer at citrusheights dot net
The Sentinel welcomes opinion pieces from residents on local issues impacting Citrus Heights. To submit a guest opinion piece, reach out to us here.
