The Grass Valley City council is chipping away at a budget deficit that started at more than $229 thousand dollars at the start of the fiscal year down to $85 thousand dollars through labor concessions and spending cuts. The reduced revenue is attributed to falling sales tax revenue. City Administrator Dan Holler says they are still working to narrow the gap.
“A couple of the personnel actions are in the process. We have a vacancy. Do we hire in October or do we wait until January? You’ve got, just in terms of our operations supplies and looking to see where we’re at. Is there anything in there that we thought we may have more expense than what we had and can we trim that back?”
The Grass Valley general fund budget is $9.8 million and Holler says sales tax numbers are beginning to stabilize.
“Our sales tax is relatively stable and the first quarter was actually up about 3%. So that was a positive. Is that going to hold for a year after one quarter? We don’t know.”
By comparison Grass Valley had a general fund budget of $11.5 million for the 2007-2008 fiscal year, and has suffered a 15% reduction in sales tax revenues over the last three years.