Yuba City looking at $41M budget for next fiscal year
tion, supervision, parks maintenance, the senior center, aquatics, and recreation programs); $2.7 million toward financial/information technology; $1.2 million for development services (planning and build- ing); $1 million for administration; $0.9 million toward human resources; and $1.8 million toward “other.”
The proposed budget for revenues is $41,570,100; total expenditures is $41,343,565. The previous year’s budget was $39,851,400
for revenues and $40,192,152 for expenditures.
Finance Director Robin Bertagna, said taxes continue to be Yuba City’s number one revenue source for the general fund, bringing in $28,886,500 in the 2016-17 budget and projected to bring in $29,659,100 in the upcoming fiscal year.
During last week’s special budget workshop, City Manager Steve Kroeger outlined the city’s vision and priorities in leading budget allocations: Public safety, developing the economy, maintaining and improving infrastructure, developing organizations, preparing for growth and enhancing the city’s image.
The city’s Public Works – water and wastewater – budget is separate and not included in these numbers.
The largest expenditures go toward employee salaries and benefits, projected to cost $32,059,181 in the proposed budget.
The retirement system CalPERS remains the city’s biggest challenge moving forward, officials said. Though the city eliminated $1.2 million in expense from the budget by paying off one pension obligation bond, rate increases are weighing heavily.
In fiscal year 2016-17, the city’s CalPERs costs were about $6.5 million and are projected to grow to $12.75 million by fiscal year 2023, Bertagna said. The projected increases, she said, are caused by CalPERS phasing in a lowered discount rate from 7.5 percent to 7 percent. What that means, she said, is that CalPERS is projecting to earn less on its investments over a long period of time.
“The city’s revenues simply cannot keep pace with this,” Bertagna said in an email. “Therefore, the city will need to look at the manner in which services are provided and what services are provided. The specifics of what this means to our community would be developed through City Council policy direction and input from community members.”
Health expenses are also on the rise, putting pressure on future budgets, according to Bertagna.
“Health premiums continue to pressure Yuba City budgets,” Bertagna said during the meeting. “They’re growing faster than inflation.”
The premiums are forecast to grow an additional $4.5 million by fiscal year 2022, she said.