SANTA PAULA : Reserve Minimizes Effects of City Deficit
The city of Santa Paula spent about $67,000 more than it took in during the 1989-90 fiscal year, but remained financially healthy because of a $1.5-million reserve, according to an audit released last week.
The shortfall for the fiscal year that ended June 30 was primarily the result of a slowdown in construction, city Finance Director Cindy Kretzer said.
“When we figured the budget for 1989-90, we had planned on construction to continue on as it had,†she said. “But with the economy, people aren’t building. Fees were about $48,000 less than we had projected.â€
The $1.5-million reserve compares to a total budget for the last fiscal year of $5.2 million.
However, Kretzer said she is concerned but “we’re six months into the current fiscal year and we’re still spending more than we’re taking in. We still have to be very budget-conscious.â€
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