Jul 26, 2014
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City's Budget Tight, Says Finance Director

City hall is putting an emphasis on building up reserves, which have dwindled in recent years, but may have to trim jobs, services, pensions and more.

City's Budget Tight, Says Finance Director

The city is facing an $1.6 million budget deficit next fiscal year, which means that more cuts to jobs and services are expected, according to the mid-year budget review released earlier this week.

The economic picture for Petaluma is mixed, with increased revenue from property and sales taxes (up by $364,000), but a decrease in revenue in all other categories, like franchise fees and business license and real property tax revenues.

With the current projections, the city would have a shortfall of $6.4 million in just four years, unless cuts are made. Some say that instead of cutting more services, the city needs to look at ways to to reduce pension obligations. Bryant Moynihan, a former city councilman and fiscal watchdog, estimates that the city has a $65 million in underfunded pension liabilities that will continue to rise in coming years.

For more info on the city's budget situation, check out this Press Democrat article.

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