The Pleasant Hill City Council, which generally approves city budgets two years at a time, is poised to pass a one-year budget in light of the financial uncertainties presented by the ongoing COVID-10 coronavirus pandemic.
The one-year budget, which would cover the period July 1, 2020 through June 30, 2021, is being recommended by the city’s Budget Committee.
The city’s $27,289,206 overall budget for 2019-2020 is forecast to go down to $25,848,225 for 2020-2021. That represents a 5.6 percent decrease.
While property tax revenue is expected to go up about 2.4 percent in 2020-2021, other tax revenues – transit occupancy (hotel guest) tax, sales taxes and business license taxes, are all expected to go down in 2020-2021 before going back up again as the economy recovers.
The city also imposed a hiring freeze in April, and that likely will continue through this coming fiscal year, according to a city staff report.
The city expects general fund revenues of $22.6 million during the upcoming fiscal year, and expenditures of $25.8 million. The city, according to its staff report, said the use of reserve funds will forestall “extreme service reductions.”
The city staff report says that if the economy recovers quickly, or if Pleasant Hill receives some form of federal or state relief, “impactful reductions can be restored. However, if the downturn is deeper or longer, more severe actions will need to be taken.” Specific “severe actions” are not mentioned.
Tonight’s Pleasant Hill City Council meeting begins at 7 p.m.
Cut the exorbitant salary and benefit packages starting at the top including the PD. You won’t need to reduce services. It’s that easy.
When we can hear the sirens running constantly, all day long these days, how do you propose cutting the PD budget and not lose any sort of services? You’re delusional. But if you’re willing to suggest they cut their budget and salaries, please step forward as one of the homes denying services if you need police response. If they are unnecessary, I’m sure you will GLADLY forego police responding to your residence if someone breaks in or there is an emergency. Can’t take from one place without giving to another.
How does property tax revenue go up 2.4% in a year?
Neighbor sold their home.
They were paying $1,578.00 per year for property taxes.
Sold home for $738,000.00
New owners will now pay over $7,500.00 in property taxes.
About $6,000.00 more than previous owners.
Correct me if I am wrong.
@Mark – the property tax revenue increases for two main reasons.
1) Single family homes typically turn over every seven years. This resets the prop-13 capped assessed value to current market rates.
2) The prop-13 limits are only on the assessed value. If you look at a property tax bill the Special Taxes & Assessments section on the left side are not restricted by prop-13. If more taxes are added, or any of them go up, they get added to the bill regardless of how large of an increase they may create. The Ad valorem Taxes & Assessments on the right side are capped by prop-13 but … if more taxes are added, or their rates increase, then your tax bill will go up without regard to the prop-13 limits.
Prop-13 only limits how much the assessed value, which is the GROSS VALUE line at the top of the tax bill, can increase in a year.
Sure was nice when Prop-13 was enacted, my mortgage payment went down by a few hundred dollars. Jarvis was telling us that this was going to “cut the fat out of government”. The public interpreted that as removing useless managers and putting the money saved into the general fund. What actually happened was cuts in the lower echelons of workers, Teachers, crossing guards, school and transit buses, Librarians, and additional funds transferred from city and county coffers into the state treasury.
Pleasant Hill is half the population of Walnut Creek.
If Pleasant Hill’s budget will be reduced to 25 million per year. How does Walnut Creek explain 92 million per year?
Am I reading the budget correctly at Walnut Creek’s city website?
I realize there are more stores and auto dealers in Walnut Creek, but just because you have revenue, does that mean you have to spend it all?
And there are a lot of million dollar homes sold recently in Walnut Creek. So probably a good uptick in property taxes.
Bigger cities have to spend more to take care of everyone else who refuses to take care of themselves.
I don’t feel like doing the research at present but one thought that came to mind is that Pleasant Hill’s announced cutback to a one year budget instead of the usual two. Walnut Creek also uses a two year budget cycle. It’s possible their announced cutbacks are for two years.
Funny how many people don’t want to discuss city budgets and how the money is being sorted to council members personal agendas.
That’s exactly what the city hopes we will do.
Sad. 🙁