The city’s finance director acknowledged officials expect lower
sales tax revenue than expected to round out this fiscal year, but
he said he could not provide a precise projection of where
Hollister stands heading into budget hearings until the state’s
situation becomes clear.
HOLLISTER
The city’s finance director acknowledged officials expect lower sales tax revenue than expected to round out this fiscal year, but he said he could not provide a precise projection of where Hollister stands heading into budget hearings until the state’s situation becomes clear.
City leaders in January talked of expecting an additional $1 million from Measure T sales tax revenues this fiscal year on top of the prior projection of $2.8 million – because a consultant last year had miscalculated the estimate.
Citizens in late 2007 approved the measure as a 1 percent sales tax increase – taking the levy to 8.25 percent, while a state hike since then rose it another percentage point – with proceeds steered directly into city coffers. It was intended to boost services in light of cuts that had severely reduced city services.
“At this point right now, we’re still being very, very conservative knowing the numbers are coming in lower,” said Robert Galvan, Hollister’s finance director.
City officials, however, must wait for firm numbers from the state – and whether it plans to borrow from local governments – before it is clear where the local budget stands, Galvan said.
He expects city council members will undergo budget hearings before a prospective approve in late June, shortly before the new fiscal year begins July 1.
Look for a story Friday in The Pinnacle on local officials’ thoughts on the state’s potential attempt to suspend a proposition that protects local governments from state borrowing.
