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Paso Robles’ city finances are improving 

2014-19 Economic ForecastAfter a sharp downturn in the economy, which prompted many cities, including Paso Robles, to make many cuts in staff and services, city finances are beginning to improve. Over the last two years, some staff positions and services have been partially or fully restored, reports Paso Robles City Manager Jim App reported.

In past economic reports for the city’s general fund, there was a lot of red, said Paso Robles Administrative Services Director Jim Throop. This report, for the years 2014-2019, there was more black than red.

“Overall, we’ll looking pretty well,” Throop said. “It’s a little tight this year, but we’re still seeing a surplus.”

The city’s cash reserves are currently $8.3 million, which is nearly 30 percent of the total general fund expenses. Surpluses are expected to continue.

Economic-Forecast-revenue-2014-19

The general fund provides money for policy, fire, library, recreation and other non-utility public services. Throop reported that initiatives to cut costs to offset revenue losses began five years ago. He said that the city’s annual budget was reduced 29 percent by cutting staff 34 percent, freezing wages, reducing employee benefits, implementing second tier retirement plans and deferring maintenance to city facilities.

The bounce back of the city’s finances is partially due to Paso Robles’ large tourism industry, which has caused new hotels to be built, new hotels and resorts being planned, new restaurants and wineries opening and the city getting accolades from around the world. Throop said the city’s revenue increase is also attributed to the expansion in the tech sector, the unemployment for Paso Robles dropped to 5.9 percent in October 2014, the housing market is no longer in decline and the industrial/commercial industry is growing, and retail sales are slowly improving.

Not included in the forecast are the potential costs for the following:

  • Possible $1.0 million payment to FEMA
  • Additional future PERS increases, due to changes in required funding levels
  • State or federal reduction or take-aways in revenue
  • Adjustments to employee compensation
  • Repayment of $2 million to sewer fund (for internal loan)

 

In addition to giving a report on the health of the general fund, Throop also gave an overview of the city’s three enterprise funds: water, sewer and airport funds.

“What I’m looking for is a way we can invest in the airport, give it more infrastructure,” Paso Robles Councilman John Hamon Jr. said. “In our council goals coming up, this is something I’d like to get into.”

The entire report on the city’s finances, can be found on the city’s website, www.prcity.com.

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