City Budget Showing ‘Fragile’ Recovery

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 ...

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