By Julie Mehta
After years of belt-tightening, the final draft for the proposed 1996-97 and 1997-98 budget issued by the city last week is like a breath of fresh air.
"The budget reflects no significant changes in service levels," said Finance Director Thomas Fil, though he said it does include some one-time costs to offset debt and improve city infrastructure.
The total proposed General Fund expenditures for 1996-97 are about $7.4 million, slightly above the estimated $7.3 million of revenue for that year. But for 1997-98, the proposed revenues of $7.5 million comfortably exceed the $6.9 million of planned expenditures.
The major worry for the city is the possible loss of $1.6 million of revenue from the utility users' tax, which is scheduled to go on the ballot this November. Unlike property and sales taxes, 100 percent of this tax goes to the city.
Fil says the average household pays about $70 per year on this tax. If voters do not approve its continuance, "the city as we know it will change dramatically," said Fil. "There is no room in the budget to make a $1.6 million cut without seriously affecting services." Fil said the city has already begun working with staff to develop scenarios for how to make cuts if the tax fails.
Fil said the budget has had two major reorganizations over the past few years and was trimmed by half a million dollars last year. He said that Saratoga is at a level now where it can cover major services, like public safety, public works, and community development, but not much more.
Drafts of the budget have already been discussed at three public meetings, Fil said. There will be a public hearing on it at the June 5 City Council meeting.
This article appeared in the Saratoga News, May 29, 1996.
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