SOLEDAD — Six months into the fiscal year, the City of Soledad has approved making adjustments to the budget for emergency services, property tax, sales tax and to the water fund.
“From a revenue perspective, we’re a little bit ahead because we’ve not received the payment for two fire items,” said Finance Director Mike Howard. “I’ve been told that the check is in the mail.”
Howard said the funds are operating within their aligned budgets but there are some budget amendments. Property tax revenue is coming in approximately $100,000 better than what the City anticipated, according to Howard.
“Sales tax is slightly up, not a lot,” Howard said. “The biggest change we have to make to our revenue is the grant revenue for the fire truck.”
The City was a recipient of a Federal Emergency Management Agency (FEMA) grant last May in the amount of $88,444. The grant was awarded to the Soledad Fire Department to enhance its ability to protect the health and safety of the public.
Howard said the grant was not in the budget originally because at the time, the City of Soledad Fire Department had not been awarded the grant.
“The largest adjustment to the expenditure side is the payment of the truck,” Howard said. “We’re adjusting the grant revenue up to $300,000, the fire truck payment was $527,000. The difference between them is the loan between the water fund and the general fund that will be paid back over a five-year period.”
Other adjustments to the expenditure side are for the enterprise funds, a rise in the water fund for $750,000 in projects that the council approved in the past six months. The sewer fund will also have a budget adjustment of $50,000.
Special Revenue Districts will have an increase due to the Senate Bill One funds that will be received in October.
“With the proposed adjustments it takes the City into a deficient of $185,000,” Howard said. “That can be covered by the $178,000 that was originally going into the reserves.”
By using the reserves, the general fund balance would remain at $1.5 million for the second year.
