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Galt prepares for flat revenue in '09 and '10
Galt city officials are preparing for two years of relatively flat revenue, something they say isn't all bad considering the sliding economy.
For the next two fiscal years, Galt expects property tax to falter only slightly from $2.5 million to about $2.49 million per year. City sales tax projections show a small uptick from $1.7 million to $1.87 million.
"We're feeling very lucky, because (other cities) had significant drops," Galt City Manager Ted Anderson said Wednesday.
Indeed, in Lodi, city officials expect sales and property tax revenue to be off by a combined $1 million during the next year.
Anderson said the lack of recent new home construction in Galt has kept property values — and thus revenue — from plummeting.
At least one city leader, however, said she's not convinced Galt's revenue will remain stable.
"That is only a projection," Galt Councilwoman Barbara Payne said of Anderson's figures. "I think reality may be a little different."
The Galt City Council received an overview Monday of the proposed budgets for the 2008-09 and 2009-10 fiscal years.
The council will take a more detailed look at the budgets at its June 24 meeting.
A council vote on the spending plans is not expected until July 1.
Anderson said no layoffs will be required, though he expects four positions could remain open. Those would affect the police, public works, building and planning departments, he said.
Also, the city will need to shift about $1.5 million from the General Fund to Galt's parks and recreation department over the next two fiscal years.
That's because revenue from the Galt Flea Market — which has funded parks and recreation in the past — has "maxed out," Anderson said.
The scarcity of applications for new homes has led to declines in development fee revenue, Anderson noted.
He estimated there will be "almost no" new home building in the city over the next two years.
That will impact more than just revenue, Payne noted. Much of Galt's industry is tied to home construction and jobs could be at stake.
Galt Councilman Don Haines, who was not able to attend Monday's budget overview, said Galt is likely in for two tough years.
"I think that we're going to have to struggle through it like everybody else," he said.
Contact reporter Chris Nichols at chrisn@lodinews.com.

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