A mid-year budget review for Hollister council members this week
revealed projected revenues in the general fund are down by
$460,000 for the fiscal year and the numbers show the city would
face a more than $7 million structural deficit by 2013-14 if
spending and costs continue on their current trends, according to a
document outlining the presentation at Monday’s meeting.
A mid-year budget review for Hollister council members this week revealed projected revenues in the general fund are down by $460,000 for the fiscal year and the numbers show the city would face a more than $7 million structural deficit by 2013-14 if spending and costs continue on their current trends, according to a document outlining the presentation at Monday’s meeting.
The breakdown from finance officials signaled that tough times will continue, and likely will get worse, at Hollister City Hall in the coming months and years. Long-term projections included in the report point to that multimillion-dollar annual deficit facing the city once the Measure T sales tax expires during fiscal year 2012-13.
Those figures also point to continued deficits that are projected to nullify a $2.5 million reserve and send the city another $482,000 in the red beyond that by the time Measure T is done.
Overall, it amounts to city council members – if they continue on their current spending track – facing a $7.1 million structural deficit in three years.
Two-thirds of Hollister voters in November 2007 approved of the 1 percent sales tax increase known as Measure T. City employees and many other local leaders pushed the effort to increase services, though most of the funds have gone toward trying to maintain them.
