The city of Elk Grove could hire new employees and spend about 6 percent more in the next fiscal year, as it benefits from a recovering local economy.
The Elk Grove City Council Wednesday night will consider a $164 million proposed budget for the 2013-14 fiscal year. The proposed budget is $10 million (6.5 percent) more than the current year, and the proposed general fund spending for the next fiscal year is $3 million (5.8 percent) more than the current year.
City Manager Laura Gill writes in a letter introducing the proposed budget that several factors point to "moderate revenue growth in a slowly improving real estate and job market."
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Namely, she says, personal income has risen, unemployment has fallen, new businesses are coming to Elk Grove, this year's sales tax revenue to the city is projected to be 10 percent more than last year, and local home prices have risen.
The city is still on healthy financial footing, and the proposed 2013-14 budget keeps a reserve equal to 27 percent of spending. That will be helpful in fiscal year 2015-16, "when changes to the rate calculation methodology for the California Public Employees’ Retirement System (PERS) are expected to significantly increase compensation costs," Gill writes.
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But for now, the city may take on more employees. The proposed 2013-14 budget includes five new hires: two contract employees would be brought in as city employees, a previously eliminated finance analyst position would be filled, a Compliance Review Analyst would be hired to oversee the city's Sustainability Element, and a police dispatch manager would be added "to meet the growing needs of the police department."
The city council could adopt the budget Wednesday, or could wait until June 26 to take action.
Elk Grove City Council meeting
6 p.m. Wednesday
8400 Laguna Palms Way
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