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City leaders held a special study session Thursday to discuss the budget for the next fiscal year beginning July 1, and it painted a more stable financial outlook for a city that has struggled with recurring deficits in recent years. City Administrator Tim Miller told City Council members the a draft budget is intended to “maintain the status quo” while continuing to build on the city’s existing cash reserves. Lacking are deep cuts to police and fire, like those implemented to balance the 2011-12 budget, which turned a looming $228,700 general fund deficit into a $76,200 surplus. The city actually expects to take in a projected $465,400 surplus for the 2011-12 fiscal year that ends June 30. The additional $389,200 from what was initially estimated came mostly from the sale of two city-owned homes in 2011 to the now-dissolved Sonora Redevelopment Agency. Expected general fund revenues — which pay for most of the city’s expenditures — for the upcoming 2012-13 fiscal year are about $4,465,000, which is about $160,000 more than the previous year. The area where annual revenue was expected to increase the most was in sales tax. The city estimates an increase of $92,600 over last year, spurred mostly by the addition of retailers PetSmart, Big Lots and Jo-Ann Fabric. Miller said the sales tax increase is about $100,000 less than what the city’s tax consultant thinks it will be at the end of the fiscal year, but they would rather be “on the conservative side.” Total expenditures are estimated at $4.325 million, which would leave the city with a $139,900 surplus at the end of the year. The anticipated back-to-back surpluses are a welcome change for a city that posted consistent deficits since 2008. The council gave special recognition to city employees, who they said have made a number of concessions over the past few years. “What you guys have been going through the past three to four years has been tough, but you stuck with it and I commend you,” said Mayor Bill Canning. Councilman Hank Russell noted that he hasn’t heard any complaints from residents about city services despite the cuts. “Department heads deserve a lot of credit to keep things afloat despite reduced staff and reduced budgets,” he said. The expenditures for the upcoming year exceed those in the 2011-12 budget by about $165,100, which Miller said was mainly due to rolling back some cost-saving measures. The Sonora Police Department’s budget is expected to increase by about $65,700 for rising personnel and gas costs, while the Fire Department’s budget has a projected increase of $2,100. Monthly furloughs will be eliminated after June 15, previous salary reductions for fire and police will be restored to their normal amounts and cost-of-living adjustments will be effective again January 2013. “It’s good we could do that,” Miller said after the meeting. “It’s nice can give back some of those concessions.”
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