The city council will officially get some good news at a special meeting this week when they will receive a mid-year budget report showing better than expected revenues.
The $346,000 increase is primarily due to the Measure O which added $246,000. Other sources of improved revenue are a $50,000 increase in property tax revenue and a $32,000 bump in transient occupancy tax.
On the expenditure side, personnel costs are about $125,000 less than budgeted but most of that saving was eaten up by attorney fees stemming from the Noble Gulch pipe failure. “That’s the cost of going to court against a multinational corporation,” said City Manager Jamie Goldstein.
City staff is recommending that the council use $200,000 of the new revenue to begin rebuilding the city’s reserve.
After receiving the mid-year budget report the council will discuss the principles that will guide the formation of the 2013-2014 municipal budget.
The special meeting of the city council is scheduled to begin at 6 p.m. tonight, February 21 in the Capitola City Hall, 420 Capitola Avenue.
Do you subscribe to the Capitola-Soquel Patch newsletter? It brings our latest stories, blogs, announcements and the day's calendar events to your in-box early each morning. Follow Capitola-Soquel Patch on Facebook and Twitter.
Do you have opinions, experiences and views to share? Consider becoming a Capitola-Soquel Patch blogger!.