{"id":2268,"date":"2012-09-04T14:04:04","date_gmt":"2012-09-04T14:04:04","guid":{"rendered":"http:\/\/www.thesecretnewsonline.com\/?p=2268"},"modified":"2012-09-12T03:20:29","modified_gmt":"2012-09-12T03:20:29","slug":"city-budget-revenue-up-spending-down-but-price-of-losing-redevelopment-funds-still-unclear","status":"publish","type":"post","link":"http:\/\/www.thesecretnewsonline.com\/?p=2268","title":{"rendered":"City Budget: Revenue Up, Spending Down, But Cost of Losing Redevelopment Funds Still Unclear"},"content":{"rendered":"

\"\"<\/a>Finance Committee Recommends Community Input on Priority Projects for Capital Improvement Pool
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The Finance Committee took a close look at the economic state of the city at its meeting last month.\u00a0 What did the quarterly figures show?\u00a0 Eight of the top 10 budgeted revenue sources showed increases over last year.\u00a0 Sales tax revenues were up 14 percent, hotel occupancy tax revenue up 18 percent, and business license tax revenue up 29 percent.\u00a0 These are the three biggest income producers for the city, and increases here suggest at least a modest local recovery from the recession.\u00a0 Only the two smallest revenue producers, fines and vehicle license fees, showed decline, the first down 4 percent, the second 7 percent. It\u2019s too early to start cheering, but the tide of up-ticks in key areas is encouraging.<\/p>\n

How about expenditures?\u00a0 Taking the 12 categories of our spending in aggregate and comparing what was spent last year to the same time this year, we find a decrease in spending of about $1.5 million.\u00a0 Revenue is up, expenditure down, and that helps explain why the city\u2019s credit rating is excellent despite a considerable debt and the cost of financing it.<\/p>\n

So, what\u2019s to worry about?\u00a0 Here in California we still don\u2019t know exactly how the ending of redevelopment agencies will affect local communities, and that includes Emeryville.\u00a0 The Finance Committee discussed a legal summary of AB 1484, the so-called \u201cRedevelopment Dissolution\/Unwind Trailer Bill” – the June 27, 2012 measure designed to speed up transfer of redevelopment agency assets to the state.\u00a0 It was not an easy read, and what price we may have to pay locally to meet its complex requirements is not clear.\u00a0 Add continuing uncertainties about the national and global economies and legitimate concerns still abound.<\/p>\n

What to do until the dust settles?\u00a0 The Finance Committee is recommending that we take advantage of the present favorable income to expenditure balance and any future tilts of this sort to build a capital improvement pool for projects that will help keep the city vibrant.\u00a0 We are also recommending that staff and the City Council develop a priority ranking for projects that might draw on such a pool.\u00a0 Community input on such a ranking is vital.\u00a0 Look for chances to have a say.<\/p>\n

I\u2019ll close with brief comment on the departure of Karen Reid, the city\u2019s Treasurer and Chief Financial Officer.\u00a0 She has left the city after 14 years of distinguished service to take a comparable job in Benicia, and those of us who have had a chance to work with her will miss her expertise.\u00a0 A search for her permanent replacement is underway.\u00a0 In the meantime, Debra Auker, an experienced financial officer most recently employed by the city of Oakland, is holding the fort.\u00a0 The Finance Committee met her for the first time at our August 20 meeting and found her reporting clear and her answers to questions concrete and informed.<\/p>\n

Bill Reuter is Resident Member and Chair of the Finance Committee, City of Emeryville.<\/em>
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