City Budget Showing ‘Fragile’ Recovery
Wendy Schultz, Mt Democrat, July 2, 2012An increase in Placerville’s revenue streams, particularly in sales tax revenues, show a fragile and gradual economic recovery that is reflected in the city’s 2012-2013 Operating and Capital Improvement Program Budget, adopted by Placerville City Council at Tuesday’s meeting.
Sales tax for 2011-2012 is forecasted to be 8.85 percent more than received in 2010-2011, according to the staff report from Placerville Finance Director Dave Warren. In addition, the State Board of Equalization recently forecasted statewide sales tax growth to be 5 and 6.4 percent in the first and second quarters of 2012 respectively.
“The first quarter 2012 sales tax returns for Placerville were a net increase of 10 percent, which is very healthy, ” said Warren. “We’ve had six straight quarters of significantly improved sales tax revenues and while we aren’t up to our 2007 peak, we are growing at a healthy rate.”
Sales tax revenues account for 50 percent of the General Fund which pays ...