Rob Johnson, city manager of San Jacinto, announced in his July report that the city has not had to furlough any staff members because of budget restraints and that city business continues online.
He said no furloughs were necessary even with the loss of approximately $930,000 due to the downturn in sales tax revenues and state cutting back on city and county funding due to the coronavirus pandemic. He said the city council did approve the fiscal year 2020-2021 budget of $1.9 million over anticipated revenues.
He reported that Tom Prill, deputy city manager, has applied for funding from the state’s Coronavirus Aid, Relief and Economic Security Act that will provide the city with $12 per person in cities across the state. It computes to $612,336 in eligible funding for the city in the future but it cannot be used to make up the city’s lost revenue to date.
He said development continues in the city to progress with five active residential construction projects and four retail development projects underway.
“City businesses have been hit hard. Most of the mom and pop shops are struggling mightily and each new order by the governor chips away at the ability to continue to operate. I remain optimistic on an economic rebound, but San Jacinto will lose some businesses along the way, which is unfortunate,” Johnson said. “Since the city does not rely on tourism and entertainment industries – the hope is that it will rebound a bit quicker.”
He reported the city does have a structural deficit looming and the city council approved moving forward with a 1% sales tax measure for November.
The city is currently undertaking polling for the viability of this effort and should have results of that polling in the next week or so.
The city council meeting this week plans to have a workshop presenting the city’s 10-year financial model and a discussion of a budget adjustment for increasing public safety personnel.
Tony Ault can be reached by email at firstname.lastname@example.org.