Since the fiscal year 2001/02 budget, the city has spent more than it took in seven years out of nine, including the last two years that included a budget augmentation of additional funds through Measure T. The only years that the city didn't spend more than it took in were in fiscal years 2003/04 and 2004/05.
HOLLISTER
At this week's special Hollister City Council meeting, council members approved a budget that includes a $2.2 million deficit with projections showing the rainy-day reserve would be depleted to a mere $287,600 by the end of next June.
The initial deficit for the city was estimated at $3.88 million. To balance the budget, city officials used $1.65 million in Measure T funds - from the 1 percent sales tax originally intended to significantly boost services - and reserve funds.
Although the budget is balanced this year, officials are concerned over the future and are facing a likelihood for cuts not far down the road.
"We are taking this very, very seriously," said Robert Galvan, Hollister's finance director. "We have a mandate to balance the budget."
Measure T funds, from the tax OK'd by voters in 2007, initially was scheduled to augment the budget by $1.4 million this year. But thanks to some salary savings, the city transferred over another $250,000 from the Measure T pot.
The revenues overall for this fiscal year are projected to be $10.77 million - not including the Measure T infusion - while the expenditures are projected to be $15.19 million, according to the city's figures.
Since the fiscal year 2001/02 budget, the city has spent more than it took in seven years out of nine, including the last two years that included a budget augmentation of additional funds through Measure T. The only years that the city didn't spend more than it took in were in fiscal years 2003/04 and 2004/05.
That trend has depleted the general fund reserve from around $15 million just seven years ago to almost nothing today.
For the full story, see the Free Lance on Tuesday.
Colin McConville Colin McConville is a reporter with the Hollister Free Lance. You can reach him by email or at (831) 637-5566.
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