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It appears that the negative financial effects of the Sept. 11 terrorist attacks are finally behind Santa Barbara.
After six years of having to tap into their reserve accounts because of steep declines in tourist revenue, the city's two-year budget plan for 2008-09 and 2009-10 contains mostly good news.
For the first time since 2001, leaders say they will balance public revenues with spending on operational costs such as salaries and supplies, which make up the bulk of the city's $102.8 million general fund budget for 2008-09. If projections hold true, the following year looks equally good: In 2009-10, the city would spend $107.6 million and take in $109.3 million.
The budget projections are "a major accomplishment," said Finance Director Bob Peirson. The city had been skimming from its reserve accounts, which are supposed to remain at 25 percent of the total budget. They have not accomplished this goal, and it will take some time to build back the reserves, Perison said. The reserves are now at $21.3 million or 21 percent of the budget.
The City Council will hold a series of public workshops and hearings on the budget over the next two months, and are scheduled to vote on the city's two-year financial plan at the end of June. Copies of the budget were released this week in print and electronic form.
The city has been climbing out of a financial hole since the Sept. 11 attacks, which took a heavy toll on places like Santa Barbara that rely heavily on sales and hotel taxes generated from tourists.
This fiscal year, which ends at the end of June, the city expects to spend $99.8 million and take in $99.1 million from property tax, sales tax, hotel taxes, utility taxes and other sources of income.
The city will use about $731,000 from its savings to balance this year‘s budget -- and officials hope this will be the last year that's necessary.
In 2008-09, leaders have proposed to spend about $102.7 million and take in $104.9 million, leaving extra money for savings other expenditures.
Members of the city’s Finance Committee were pleased this week during the first of several sessions they will hold on the budget. Chairman Roger Horton said he had anticipated asking the city to be more conservative with its revenue projections, but was pleasantly surprised with the draft budget presented Tuesday.
Residents will have a chance to give input over the next two months. The following public hearings will be held at City Hall in Council Chambers to discuss the budget:
* 6 to 10 p.m., Monday
* 1 to 3 p.m., May 7
* 1 to 5 p.m. May 31
* 6 to 10 p.m. June 4
* 9 a.m. to noon June 7 Contact Melissa Evans at
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