Budget Plan Includes $900,000 Surplus

After reviewing its preliminary 1996-97 budget, the City Council discovered that it is in the enviable position of having for the first time in several years a surplus of more than $900,000 to dole out in the coming fiscal year.

The council pored over its new budget plan Wednesday. The numbers showed that frugal spending over the last year and modest increases in sales tax and property tax, along with a one-time repayment to the general fund from the city’s Redevelopment Agency, have given city leaders a modest surplus to work with.

Assistant City Manager Richard Hare said the surplus is no windfall and will probably be needed to make up money the city has lost over the last six years because of changes in the state budget.

The preliminary general fund budget shows that the city plans to spend about $5.06 million in the next fiscal year, or about 6.49% over the current year, Hare said.

Just how the City Council will spend the surplus has to be determined over the next several weeks, said Councilwoman Eloise Brown.

Among the items for which the council will consider setting aside money are the city’s reserve fund, the local library, a capital improvement fund, a fund to reduce a park service property assessment tax, a fund to build tennis courts at Arroyo Vista Park and a teen center.