Sandra Emerson, Staff Writer
Created: 06/18/2010 01:59:09 PM PDT

UPLAND – Facing the loss of more money to the state and a continuing decrease in revenue, the city has adopted a balanced budget for the next fiscal year.

General fund expenditures for the 2010-11 fiscal year are $37.9 million, which equals the revenues the city expects to take in. It is about $800,000 lower than the current budget.

“This is a particularly difficult year in light of the uncertainty in the community and the region, and we spent a lot of time looking for ways over the last couple of years to reduce our operating costs,” City Manager Robb Quincey said. “We made a lot of progress there, but this was the toughest year we had so far in terms of making those kinds of reductions and adjustments in our programs.”

The state has taken nearly $3 million in redevelopment money from the city and is expected to take an additional $609,000 in 2011, said Stephen Dunn, city finance director.

“There’s a lawsuit, so we have budgeted in hope of winning the lawsuit,” Dunn said. “Should we lose the lawsuit and that money be sent to the state we will de-program some of our capital improvement programs. That money will not come from our reserves.”

Projected property tax revenue is down $400,000 from the current budget.

Sales tax revenue is projected to remain at the same level as the current budget, which is down $500,000.

“Again, like the property values, people aren’t spending as much money as they had in the past,” Dunn said. “It will just be a matter of time before this all rebounds.”

The city has made $4.1 million in budget reductions since the 2008-09 fiscal year, according to a staff report.

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