• How did we get here?

    Since adoption of what was thought to be a balanced City budget, Pacific Grove has been hit with the potential of State of California raids on revenues. While a budget deal was expected as early as Thursday, July 16, City officials believe they must plan on a “worst case scenario.”

    The worst case includes a property tax takeaway of $451,000. While essentially a loan which would, by state law, have to be repaid within a three-year period, such a takeaway would still have a major impact on the City’s ability to provide services.

    Gas Tax revenues in the amount of $240,000 per year are used by the City to pay a portion of street maintenance workers’ salaries and street lighting costs. If the State suspends these revenues for cities, which has been recommended by the Governor and the Legislative Analysts Office, those revenues would then be replaced by General Fund monies.

    Prop 42 funds are also up for grabs by the State. TAMC, the Transportation Agency of Monterey County, passes through these sales tax on gasoline funds for which Pacific Grove’s allocation is $146,000, the loss of which would reduce the amount of maintenance that Pacific Grove could do.

    CalPERS Board has changed its rate-setting policies. The City can now expect a 1 percent increase in FY 2001/12, 3 percent in FY 2012/13, and 5-6 percent in FY 2012/13. In the parlance used repeatedly by various speakers at the City Council meeting on July 15, this is merely “kicking the can down the street,” only to have to kick it again later.

    posted to Cedar Street Times on July 18, 2009

    Topics: Current Edition, Front PG News, Marge Ann Jameson


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