City Hall

HOLLISTER

A consultant hired by Hollister to track sales-tax figures has reported the city’s Measure T revenue estimate for the year is about $1 million more than the budgeted projection, and officials are considering whether to set aside the funds in a designated “T” reserve or allocate the money into the general fund reserve while essentially putting it toward the structural deficit.

Diamond Bar-based HdL Companies concluded in late 2007 that Hollister would gain about $2.8 million annually in additional revenue from the 1 percent tax increase enacted in April 2008 that sunsets after five years. City Manager Clint Quilter surmised that the estimate was $1 million off partly because the consultant miscalculated expected revenue from vehicle sales.

“I don’t know for sure why their numbers were different,” said Quilter, noting the firm routinely handles Hollister’s sales-tax examinations and not merely Measure T numbers.

Quilter informed Hollister council members of the overage during a mid-year budget review Monday. Officials now must consider the two accounting options – keeping the Measure T funds separate in their own account or funneling the dollars into the general fund reserve. The city manager said he expects council members to consider the options in late February.

Councilman Doug Emerson, however, said he “not real optimistic” about ultimately gaining $1 million more than projected. He also said he’s hesitant to “cover the structural deficit … unless we really make that public and the public knows that we’re doing that.”

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