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$796.5 Million Draft Budget From Placer Supervisors

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The Placer County Board of Supervisors voted unanimously to approve a draft, balanced budget of $796.5 million for the next fiscal year, $19.3 million less than last year’s final budget of $815.8 million.

The budget maintains critical services, helps meet future obligations and positions the county to adapt to foreseeable funding and policy changes at the federal and state levels of government.

The county’s fiscal year runs from July 1 to June 30. The proposed budget will serve as the interim spending plan when the new fiscal year begins July 1. The board is scheduled to adopt a final budget with updated revenue and expenditure figures in September.

In a presentation to the board, Placer County Chief Financial Officer Kate Sampson highlighted several indicators of the healthy economy currently enjoyed in the county, including improved property values, an increase in transient occupancy tax collections from a good snow year and a modest uptick in sales tax revenue.

Despite healthy revenue increases, escalating costs for CalPERS retirement and healthcare obligations, among other emerging needs, are keeping pace with those increases.

“While it is true that some revenue sources are increasing, such as a bump in transient occupancy tax over last year, the county’s operational costs are rising at an even faster rate,” said Chairwoman and District 5 Supervisor Jennifer Montgomery. “We’re seeing an essentially flat budget, but higher costs, and therefore services could start getting squeezed. So, it’s important that we recognize this is going to be a challenge in the future, and we should be mindful about planning for that.”

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