Government roundup: Retail slump to hurt municipal coffers
| Monday, Nov 30 2009 06:39 PM
Last Updated Monday, Nov 30 2009 06:41 PM
RETAIL BLUES
Dismal sales tax estimates from the state have squeezed local coffers for a fourth consecutive quarter, with reduced payments for the first time hitting the city of Bakersfield and county of Kern.
Kern County's retail sales receipts, for example, had dropped more than 28 percent during the April-June period compared to a year earlier, according to a letter sent last week by the state Board of Equalization. The state's November payment to the county was therefore cut by nearly $759,000, down to $1.97 million.
The city of Bakersfield, meanwhile, saw an estimated sales drop of more than 17.5 percent. The Board of Equalization trimmed the city's November check by nearly $564,000, down to $3.2 million.
Of Kern's 11 incorporated cities, only Shafter wasn't included in state mailings announcing cuts, data released Monday show.
Delano, Taft, Wasco, McFarland, Ridgecrest and California City all had sales tax declines greater than 17.5 percent. Maricopa, Tehachapi and Arvin had drops greater than 28 percent.
The November payments are known as third quarter "advances" but are calculated from sales made during the second quarter of the calendar year.
It's the fourth statewide quarterly decline in a row -- a phenomenon that had never occurred before 2009, according to the Board of Equalization's release. Monday's announcement said 535 of California's 768 local jurisdictions had received letters announcing extra cuts of 6-10 percent. That's on top of an 11.5 percent reduction statewide.
Alan Tandy, Bakersfield's city manager, said in an e-mail the state's November figures are only estimates.
"If the real numbers come out like the estimate it will not be good news for our budget, but we will not get that information until mid-December," Tandy wrote.
Sales taxes, along with property taxes, generally provide most of a city's general fund revenues. Those dollars are highly prized since local officials have the most say in how they are spent.
Hannah Chung, finance director for the city of Tehachapi, said the latest letter -- which announced an extra 10 percent cut of nearly $24,000 -- wasn't a surprise.
"I'd rather have the full sales tax" payment, she said. "However, I think we'll be OK."
TEMPORARY HEADS
With two city department heads recently announcing they're leaving, Bakersfield's city manager assigned staffers from his office to step in temporarily. John Stinson will be interim chief of the Water Department, while Steve Teglia will watch over Human Resources until the spots are filled.
ROAD WORK
Here's the latest on Bakersfield's many road projects -- something to keep in mind during holiday shopping season:
* Stockdale Highway remains at two lanes between Wetherly Drive and California Avenue; project completion is expected in February.
* Mount Vernon Avenue from Highway 178 to University Avenue is nearly done. Paving is finished so workers will now paint stripes and reconfigures traffic signals. The job should be finished by Dec. 10.
* Ashe Road, from White Lane to Ming Avenue, remains at two lanes, with an expected finish date of Dec. 7.
* Wilson Road, from White Lane to Planz Road, is also down to two lanes. Finish date: Dec. 16.
* Hughes Lane, from White to Planz, is another two-laner with a finish date of Dec. 16.
* Wible Road, from Pacheco Road to White Lane, has been put on hold until after Christmas.
-- Compiled by staff writer Gretchen Wenner
