Colusa adopts proposed revised budget

The Colusa City

Council adopted a proposed revised budget for the 2020-21 fiscal year last week, with revenues estimated at $16.6 million and general fund expenditures projected to be $352,803 higher than they were projected in the mid-year budget review.

The budget included a $309,410 deficit, with many of those expenditures related to the ongoing COVID-19 pandemic.

The most notable cost increases in the general fund included: a 10 to 12.6 percent salary increase for city employees estimated to be $176,000; a $63,000 increase in the PERS unfunded accrued liability; a $51,4000 increase in health insurance provided to city employees; and the addition of an economic development communications tourism director position with a salary of $95,300.

One city police officer position was dropped to add a lieutenant position, adding $19,300 to the budget. The budget also allocated $34,000 to fill a vacant firefighter position – to replace per diem costs.

The city’s cannabis reserve fund is anticipated to grow by more than $200,000 by the end of the fiscal year, according to the budget documents, with an anticipated $602,234 estimated to be in the fund by July 2021. This increase in revenue is anticipated to come from the addition of new cannabis businesses expected to open during the fiscal year. Revenue from cannabis-oriented businesses goes directly into the fund.

General fund reserves are anticipated to be approximately $21,958 lower than projected in the mid-year budget update and fiscal year tax revenues are expected to decrease by $105,905 as well.

“While County property taxes are anticipated to be

$10,188 higher, sales tax, transient occupancy tax, and interest earnings are expected to decrease by $125,905 because of the impact of COVID-19 on the economy,” it was stated in budget documents.

There is also a forecast reduction of $200,548 in non-personal services within general fund operations.

The reduction is mainly due to the wording of the loan from the general fund in the amount of $116,000 in the Finance Department budget and denied grant expenditures for the Boat Launch Project in the amount of $89,000 which is recognized in the Engineering Department budget, it was stated.

There is also an $11,300 increase to capital outlay for City Hall to update information technology equipment to “better serve community meetings during the COVID-19 crisis.”

At the end of the 2020-21 fiscal year, general fund reserves are anticipated to be approximately $2.34 million, on par with where they were in June.