Net surplus of $11,315 with reserve of $791,000 forecast for general fund
Council members unanimously adopted a 2013andndash;14 city budget that includes a balanced general fund but water and sewer funds with deficits.
Officials are projecting a deficit in the city's water enterprise fund of $417,000 for the 2013andndash;14 fiscal year, City Manager Eugene Palazzo said. There is a cash reserve of $443,000 in the water fund, but Palazzo said that the reserve would not pay for necessary capital projects, including repairs to water tanks on Amador Street and Washington Boulevard and an elevated water tank near Wonder Stump Road.
Meanwhile, the sewer fund has a $564,000 deficit, Palazzo said. Staff is pursuing additional money from the state to pay off the loan that was used to build the wastewater treatment plant, he said.
"We're doing a rate analysis, and that will come back to the Council this summer," Palazzo said.
rates increased by $5.38 a month in May. That rate increase was the
last installment of a $30 rate increase approved by the City council in
Water rates also increased by 62 cents per 100 cubic feet
for multi-family residential properties in the city and county. Light
commercial water rates increased by 46 cents per 100 cubic feet. Heavy
commercial water rates increased by $1.12.
Through maintaining the
essential services without adding any more, the city has been able to
maintain a balanced general fund, Palazzo said. The 2013andndash;14 general fund
will have a net surplus of $11,315 with a reserve of $791,000, he said.
Palazzo recommended adopting the existing budget and reviewing
it in six months to determine if there are unspent dollars that could be
used for a one-time expense, such as new patrol or fire vehicles.
are balanced in the general fund, barely," he said. "There are a lot of
unknowns and a lot of things that are not included in the general fund
budget. Let's take a look at where we're at mid-year and see what we can
The city is currently recruiting a 12th police officer,
Palazzo said. He added that his goals are to add a 13th officer to the
police force and to move forward with retro-fitting the fire hall.
CDBG funds allocated to RHS, Harrington House
Three members of the City Council approved recipient agreements between the city and Rural Human Services.
first recipient agreement will provide $275,000 in Community
Development Block Grant funds to RHS's food bank. The second recipient
agreement will provide $225,000 to the Harrington House domestic
The Council voted 3-0 in favor of the
agreements, with Crescent City Mayor Rich Enea and Councilman Ron
Gastineau recusing themselves. Gastineau is employed by RHS and Enea
sits on the organization's board of directors.
Schellong made the motion to approve the recipient agreement with
Harrington House but said she had concerns about the amount of money
going to personnel, $135,000, versus the amount allocated to direct
client assistance, $25,000.
City Attorney Bob Black pointed out
that Harrington House personnel keep its doors open 24-7 and provide
women and children with shelter and food.
Council says goodbye to finance director
Crescent City Council recognized Finance Director Ken McDonald, who is
leaving to become city manager for Firebaugh, a small town in Fresno
County, on July 15.
"In all my career this has been the hardest
one to make the transition," McDonald said. "I think we got a lot of
things accomplished and it's definitely going to be a better set of
books for the next person. We've weathered this tough economic storm a
lot better than most cities."
Council members commended McDonald's
patience and skill in helping Crescent City balance its budget and
dissolve its redevelopment agency.
"The joke used to be that the
City of Crescent City didn't balance their bank statements or balance
their checkbook," Councilwoman Kelly Schellong said to McDonald. "When
you came here, you took the task on with a passion that I have not seen
with anybody that worked in the city finance department. Your talents
are above and beyond what most cities could probably expect."
Reach Jessica Cejnar at firstname.lastname@example.org .