Public hearing on Riverbank budget tonight

Reserves may be tapped to offer needed services

By Leslie Albrecht
lalbrecht@modbee.com

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RIVERBANK -- With a recall attempt under way and a mayoral election on the horizon, the City Council has seen plenty of turmoil lately.

Tonight, it's back to city business. The council will hold a public hearing on the city's proposed budget at 7 p.m. at the Community Center, 3600 Santa Fe St.

The city is projecting a 9 percent drop in general fund revenues for the 2009-10 fiscal year, which starts July 1. Residents can expect a decline in services, according to a city report. Two full-time employees and three part-time employees have been laid off.

The city expects $7.1 million in general fund expenses in the upcoming fiscal year. Riverbank will take in only $6.6 million in general fund revenues. The general fund is the pool of money that pays for services such as police and parks.

To make up the deficit, city staff recommends dipping into Riverbank's reserve funds, or rainy day savings.

If the council approves the spending plan, the city's savings would shrink from $1.1 million to $592,070 by June 30, 2010. Reserves would be whittled from 15.5 percent to 9 percent of the city's general fund.

The council's approval tonight would allow staff to start spending when the new fiscal year starts. The council will review a final version of the city's 2009-10 budget at a September meeting.

Also on the council's agenda is a proposed sewer rate increase that the council shot down last year. City staff want permission to move ahead with a sewer bill increase to pay for state-mandated upgrades at Riverbank's sewage treatment plant.

In November, the council rejected a plan to raise monthly bills to $22.67 from $20.15. The council will take a second look at the increase tonight. If the plan moves forward, city staff will present the proposed rates July 13.

Riverbank's recent political upheaval won't be far away at tonight's meeting. The council is scheduled to OK a resolution calling for an election Nov. 3 to fill Riverbank's empty mayor's seat. The winner will serve the remainder of the 2008-12 term vacated by former mayor David I. White, who resigned in May.

Bee staff writer Leslie Albrecht can be reached at lalbrecht@modbee.com or 578-2378.