City water district cash falls from $60 million in 2008 down to $3.7 million
October 30, 2010 2:00 PM
Brooke Edwards

VICTORVILLE • The city posted a $1 million budget gap at the end of the first quarter, according to a financial update on Tuesday’s agenda.

The city used reserves to plug a $4.7 million deficit at the start of the fiscal year July 1. Management said revenues needed to increase and expenses needed to drop during the year, since those reserves won’t be there to cover a similar shortfall at the end of the year.

Only one of those conditions has panned out so far.

Overall revenues to the general fund were $1.9 million below projections as of Sept. 30, according to the staff report. Though both property and franchise taxes are slightly above projections, sales tax revenue is down 24 percent from even the conservative estimate included in this year’s budget.

However, expenses are 2 percent below what was expected for the first quarter, having spent 23 percent rather than 25 percent of the year’s total. That’s a savings of nearly $900,000.

The city’s finances have sparked ongoing talks of further staffing cuts. Employees told the Daily Press news of December layoffs was floating around City Hall, but City Manager Jim Cox dismissed it as rumor.

“Any changes in staffing, operations or other alternatives will be considered in March when all the necessary information is in,” Cox said via e-mail. “The financial status will go to the council for policy direction at that time.”

For more about the budget, read the full story in Sunday’s Press Dispatch. To subscribe to the Daily Press in print or online, call (760) 241-7755, 1-800-553-2006 or click here.

Brooke Edwards may be reached at (760) 955-5358 or at