The fledgling city of Wildomar will be generating less revenue than it initially projected, according to its new budget.

The budget for the fiscal year that begins July 1 estimates that Wildomar will receive 30 percent less revenue than officials expected before the sprawling unincorporated area became a city last year.

Wildomar, which incorporated a year ago, formed its financial expectations based on a report created by Riverside County.

That report, called a comprehensive fiscal analysis, estimated that Wildomar would be generating $13.2 million in general fund revenues this fiscal year.

City officials have since scaled those revenue projections back to $10.8 million.

The recession is to blame for the discrepancy, according to Gary Nordquist, the city’s finance director.

The county crafted its analysis based on the area’s revenue in fiscal year (FY) 2005-2006 – a period before retail sales and property values began a sharp decline.

"That was when the economy was in a real boom," Nordquist said in response to last week’s adoption of its plan to spend $10.5 million on police, fire protection, planning and other key municipal services.

Yet despite the reduced revenue stream, the city expects to add $328,200 to its $2.4 million budget reserve this fiscal year.

Fixing errors brings in more revenue

Last week, the city also amended its FY 2008-2009 budget Advertisement
to correct some oversights, adjustments that are expected to bring in more money.

The city’s finance department has discovered a source of revenue that the county mistakenly retained from the city. As a result of that oversight, Wildomar officials expect the county to transfer $585,800 to the city.

The revenue will come from franchise fees, or fees private companies pay so they can use public right-of-way. Examples of such companies include electrical utilities, waste disposal companies and water districts.

Wildomar’s expenses have also increased. The city has spent $101,325 more than the budget allotted for employee benefits and the account to build City Hall.

Nordquist attributed those increases to inaccurate assumptions that were made as the city began operating.

Wildomar’s new budget

Revenues

Property taxes: $3.8 million

Motor vehicle fees: $2.3 million

Fees for services: $1.2 million

Sales tax: $900,000

Gas tax: $683,000

Misc. fees and taxes: $674,100

Measure A: $500,000

Franchise fees: $492,000

Traffic congestion revenue: $233,000

Total revenue: $10.8 million

Expenses

Public safety

Police services: $3.7 million

Fire protection: $1.8 million

Animal control and emergency preparedness: $148,000

City government

City Manager’s office: $467,900

Finance Department: $384,000

City Attorney’s office: $300,000

Non-departmental and facilities: $213,300

County loan payment: $200,000

City Clerk’s office: $191,200

City Council: $144,500

Community Services Department: $126,700

Community development

Planning: $598,400

Building and Safety: $557,500

Development Engineering: $200,300

Code Enforcement: $133,000

Public Works and Engineering: $97,000

Special expenses

Gas Tax: $450,000

Measure A: $413,000

Traffic Congestion Relief: $339,800

AQMD: $22,000

Total expenses: $10.5 million

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