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Auburn’s Financial Emergency

The Auburn City Council heard the staff report of the City’s Financial Status for Fiscal year 2013-14. The mid-year report for the city was followed up by the Interim City Manager, Rich Ramirez overview of several issues the city needs to be out in front of for the 2014-15 fiscal-year that will impact the City’s finances in the future.

The city will be required to increase their contribution to CalPERS beginning in 2016-17 with a five year ramp up and a five year ramp down.  This increase is in addition to already existing contribution changes.

Big box stores like Wal-Mart and Costco opening outside the City Limits but just beyond the City’s boundaries, could further reduce the amount of City tax revenues,

Senate Bill 983 authored by Senator Hernandez would mean the sales tax dollars that have been coming to the city of Auburn from Nella oil will be spread to all the card lock locations cities and counties or origin rather than back to the corporations headquarters at the airport in Auburn. This could cost the city over a million dollars according to owner Tom Dwelle.

And the transition occupancy tax or TOT that will flow to the County instead of the City should another high end hotel open outside the city rather than inside. . 

Interim city Manager Ramirez calls the mid-year report a call to action on several fronts. Councilman Kevin went further by calling the forecast an emergency.

            Hanley on finances            

Councilman Keith Nesbitt  blames the state for Auburn’s potential financial woes.

            Nesbitt on finances            

The Auburn City council met in council Chambers at City Hall 1225 Lincoln Way in Auburn.

Hanley-photo

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