Budget Challenges And Roundup Prep On Sonora Council Agenda
Sonora, CA — A midyear budget review shows that the City of Sonora’s revenue is lagging behind earlier projections.
At tonight’s 5 pm meeting, the city council will review the latest budget trends and discuss any needed adjustments.
Detailing how tax dollars are trending downward, the meeting documents note, “Revenue trends are beginning to show signs of weakness, reflecting broader economic challenges. Total sales tax revenues are approximately 3.5% below original estimates and 9% below the prior fiscal year. Bradley Burns Sales Tax revenues are down 5% from our conservative budget estimates, while Measure Y, the 1% sales and use tax passed by voters in November 2022, is down by 1.2% from our earlier estimates.”
The Transient Occupancy Tax (TOT) and the cannabis dispensary fees are within conservative budget estimates, but the city notes that revenues are still down compared to a year ago.
The report adds, “These revenue declines highlight a slowing local economy, impacted by several factors. Higher interest rates, introduced to curb inflation, have reduced consumer spending on discretionary goods and services, which are key drivers of sales tax and transient occupancy tax revenues in the city.”
In addition, tonight, there will be votes on new salary structures for several employees and a discussion about the Mother Lode Roundup.
The city leaders will vote on closing some of the streets on Saturday, May 10, for the parade, and allowing alcoholic beverages in select areas during the event. The council meeting is open to the public.
