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Mountain Democrat, Wednesday, June 19, 2024

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WEDNESDAY, JUNE 19, 2024

City braces for a supremely good time challenging budget year Odin Rasco Senior staff writer

Lagging sales tax revenue and rising costs across the board may require the Placerville City Council to tighten the budgetary belt, according to information presented to the council June 18. Despite strong per capita sales tax revenue for the city — estimated to be around $604 per person in 2023, ranking Placerville 37th out of 539 California agencies — receipts for the quarter that ended in December 2023 dropped 3%, equivalent to around $52,000. The drop reflects a similar trend across the state, where fourth-quarter receipts dropped by an average of 2.5%. With dropping sales tax figures and an estimated 37% drop in construction permit income, the General Fund is expected to see a slim decrease of about $201,000. Notably, how the city makes its sales tax money has seen a shift over the years, with online tax revenue growing 9% over the past decade. “It was interesting looking back; in 2014, that was actually 19%,” Placerville Director of Finance Dave ■ See CITY BUDGET, page A9

Leaders tackle ‘uwnbalanced’ county budget Eric Jaramishian Senior staff writer

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El Dorado County leaders said they will have to work to “structurally” balance the county’s budget in the coming months. During last week’s 2024-25 fiscal year budget hearing, the Board of Supervisors unanimously approved the $1.03 billion recommended budget after staff shared how inflation and slowing revenue growth are impacting revenue. Property tax revenue is projected to grow by 3.5%, significantly lower than previous years’

growth trend, according to Deputy Chief Administrative Officer Sue Hennike. Sales tax and use tax revenue will only increase by 2% this year as calculated by the county consultant Hinderliter de Llamas and Associates, she added. A rise in online sales and inflationary pressures are slowing revenue growth, according to county leaders. “I think we have a structural issue, looking out into the future, that we are going to need to address by continuing to restrain our use of the General Fund (and) finding efficiencies,” Hennike said. Regarding meeting board budget policies, the recommended budget falls short by about $10.7 million. County departments’ requests for supplemental revenue of $2.1 million has been slashed to $700,000. “What I am hearing is this is an overall status quo budget this year, and the overarching theme is that the goal of this budget is to conserve General Fund costs ■ See UNBALANCED, page A9

The Junior Livestock Auction at the El Dorado County Fair Saturday attracted many interested buyers and onlookers — all eager to see the exceptional young people and the animals they raised. Union Mine Future Farmers of America member Emma Rogers, above, is all smiles as she holds up one of her Reserve Supreme Champion Chickens. She sold her pen of two chickens to Brooke and Kyle Cary for $500. At right, Union Mine FFA member Emily Ellsworth’s 278-pound Supreme Champion Market Swine was sold to C&H Motors for $15 per pound.

Photos by Laurie Edwards

Ponderosa FFA member Andrew Hernandez, above left, sold his 89-pound Reserve Supreme Champion Market Goat to Raley’s Supermarket for $12 per pound at the Junior Livestock Auction. At right, Union Mine FFA member Amelia Kovach’s walks in with her Supreme Champion Market Steer, which sold for $14 per pound Saturday. The 1,300-plus-pound steer was purchased by Krissie Vineyards and Bevier Structural Engineering. ■ SEE MORE PHOTOS ON A8

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