The latest general fund update as of August 2010 stated that the revenues to date are $1.132 million. While this is similar to the same two-month period for the past two years, it is behind the budget’s $16.6 million estimated revenues for the fiscal year.
Calexico’s $5.5 million deficit was balanced in July, but Finance Director Judy Hashem said at Wednesday’s City Council meeting changes need to be made to the expenditure levels. The general fund expenditures for August were already 15 percent of the annual budget, 6.67 percent more than the normally necessary amount.
As almost 80 percent of the general fund is salaries and benefits, Hashem said, the current level of personnel costs is not sustainable unless revenues increase.
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“Every year the city tends to not make the necessary adjustments it needs to make,” she said.
Hashem said the city can’t continue to provide the same services as several years ago because of the low revenues. She also said that the level of supplies and services, which have repeatedly been cut in the past few years, is not sustainable given the increasing cost of supplies.
City Manager Victor Carrillo said all revenues haven’t been received and if departments stay within their budgets the budget should balance in June 2011.
In August the Customer Service, Human Resources, Parking Facilities, Fire Administration and Carnegie Library departments exceeded their budgets, though some of the expenses were one-time costs.
The update did not reflect any sales tax revenue, which will not be reflected until next month’s report. The first property tax increment will be received in December.
If the city uses the $150,000 necessary to balance the budget in June 2011, only $24,851 would remain as cushion, an estimate Hashem wrote is insufficient with all factors considered.
At Tuesday’s meeting Councilman Bill Hodge asked why monthly budget reports had not been presented as previously requested, to which Hashem said she needs two more employees. Councilman Daniel Romero suggested council discuss how the Finance Department could receive more assistance. The item will be discussed at Tuesday’s City Council meeting.
Staff Writer Sarah Horne can be reached at firstname.lastname@example.org or 760-337-3435.
By the numbers
$2.709 million — August general fund expenditures
$1.515 million — July general fund expenditures
$1.576 million — August budget shortfall
$974,000 — July budget shortfall