Most city departments — fire, community development, public works, community service and the city attorney's office — finished up the fiscal year under budget, with the police department significantly under budget because it couldn't find new officers to hire.
Revenues markedly above projections included sales tax, interest earnings, state-mandated reimbursements of claims not paid when the state was broke, property taxes in lieu of vehicle fees and construction processing fees — as the issuance of building permits reached a zenith last year, Frank said, as did supplemental property taxes.
Never one to allow the council's financial euphoria to remain unchecked, Frank warned that property transfers had dropped — reducing property tax expectations for this fiscal year — and new building projects have slowed in recent months.
The council voted unanimously to modify the 2006-07 budget to reflect the audited fund balances and spend the windfall as recommended by Frank.
"We have six or eight recommendations for spending the money — a couple of them very substantial," Frank said.
He recommended the council set aside $1 million to pay for the extra employee pay period that will occur next year. It catches up with the city every 14 years.
Other appropriation recommendations:
$1.8 million to cover the increased budget for the community/senior center — $1 million for additions to the plan and $800,000 for a contingency fund — all, part or none of which could be spent as needed.
Frank also recommended adoption of the Measure A Oversight Committee recommendation about the funding for the amelioration of a potential landslide adjacent to the 2005 slide in Bluebird Canyon.