Tuesday, September 2, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Suisun finances look better, but still face challenges

By
From page A8 | February 19, 2014 |

SUISUN CITY — City Council members heard good news tempered by caution Tuesday while reviewing the midyear budget.

Jason Garben, the city’s economic development director and chief financial officer, said halfway through its budget year, the city is seeing $689,100 more in revenue than it anticipated in the 2013-14 fiscal year budget flowing into its coffers. But Garben warned the council not to rest easy because of two fiscal challenges that could drain that money away – and more.

One is a year-long delay in the opening of the Walmart supercenter that’s planned for the east side of Suisun City, which is delaying an anticipated inflow of sales tax income from the store. The other is the yet-to-be determined outcome of a legal battle between Suisun City and the state Department of Finance over a $1.75 million repayment to the city from its former redevelopment agency.

Garben’s report was a midyear budget review to show the council where it stood financially.

According to Garben’s report, the city started its 2013-14 fiscal year with $3.3 million in the bank and is now estimated to collect a total of $9.15 million in income, a considerable jump from the originally estimated $8.46 million in the budget. It is spending $9.9 million this fiscal year, which is $165,300 more than it initially planned.

“The bulk of this is in personnel services,” Garben said.

Last fiscal year, Suisun City got $253,500 less than it expected, partly due to the delay in building the Walmart. It also spent $273,600 more than initially budgeted, largely due to turnover in the Police Department and legal expenses.

The city experienced declining revenues for the past five years due the recession and the loss of redevelopment. It spent that time cutting expenditures and slowly spending down the money it got from selling land on Twin Sisters in a bridging strategy that counted on Walmart opening this July.

Walmart’s opening has been delayed until 2015, and so has the start of a predicted $1.1 million in annual sales tax income. A recovering economy has allowed Suisun City to get more revenue in other areas, which has offset the increased costs of paying for employee health care and retirement costs, and city utility costs.

At present, Walmart is expected to award construction bids by the end of this month with the opening date for the store pegged for spring 2015. Every month Walmart is not open, the city estimates it will lose $92,000 in sale tax income.

Suisun City is also battling in court with the state Department of Finance over the city’s $1.75 repayment of a loan from the redevelopment agency to improve the streets at Harbor Center. If the state wins in court, Suisun City will get $262,500 of that loan, losing $1.49 million, which represents most of the city’s general fund emergency reserve.

“Taking these two worst-case scenarios together, current reserves basically cover both risks, leaving the city with no reserves,” Garben wrote in his report to the council.

Garben wrapped up his report by saying the city will have a clearer view within a month’s time of what will happen with Walmart and the outcome of the legal struggle with the state.

“These are things we certainly need to keep an eye on,” Garben said.

Reach Ian Thompson at 427-6976 or ithompson@dailyrepublic.net. Follow him on Twitter at www.twitter.com/ithompsondr.

Ian Thompson

Ian Thompson

Ian Thompson has worked for the Daily Republic longer than he cares to remember. A native of Oregon and a graduate of the University of Oregon, he pines for the motherland still. He covers Vacaville and Travis Air Force Base for the Daily Republic. He is an avid military history buff, wargamer and loves the great outdoors.
LEAVE A COMMENT

Discussion | 1 comment

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Rich GiddensFebruary 19, 2014 - 1:43 pm

    ''What will happen with WalMart''----yeah right! If WalMart was going to build a neighborhood denigrating Superstore in our midst then they would have done it by now! What business sense does it make to build 2 big box stores within 3 miles of each other? Soon the logical question will be ''how long has the city and its horrible officials known that Walmart got cold feet and decided against building?" Will the news be released late on a Friday afternoon at the start of a 3 day holiday? I believe so, but as long as I'm stuck in this foul state of blighted neighborhoods and lying government officials, you will not hear silence from me!

    Reply | Report abusive comment
.

Solano News

Labor Day not a holiday for everyone

By Amy Maginnis-Honey | From Page: A3, 1 Comment | Gallery

 
Labor Day breakfast introduces union-backed candidates

By Susan Hiland | From Page: A3 | Gallery

Pool provides last dose of summer fun in the sun

By Amy Maginnis-Honey | From Page: A3 | Gallery

 
SafeQuest schedules peer counseling training course

By Susan Hiland | From Page: A5

Labor Day sees more Solano freeway crashes

By Glen Faison | From Page: A5

 
Fairfield police log: Aug. 31, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Aug. 31, 2014

By Susan Hiland | From Page: A12

Suisun City police log: Aug. 30, 2014

By Susan Hiland | From Page: A12

 
Fairfield police log: Aug. 30, 2014

By Susan Hiland | From Page: A12

.

US / World

VP Biden says workers deserve ‘fair share’

By The Associated Press | From Page: | Gallery

 
Obama: ‘Revving’ economy calls for higher wages

By The Associated Press | From Page: | Gallery

Senegal monitors contacts of 1st Ebola patient

By The Associated Press | From Page:

 
San Francisco to be 1st to test urban farming law

By The Associated Press | From Page:

GOP challenger tries novel tactics against Brown

By The Associated Press | From Page: | Gallery

 
Texas’ Perry says disparaging tweet unauthorized

By The Associated Press | From Page:

US eating habits improve a bit – except among poor

By The Associated Press | From Page: | Gallery

 
No gray area: Beliefs shape views of Brown killing

By The Associated Press | From Page: | Gallery

Americans detained in North Korea call for US help

By The Associated Press | From Page: | Gallery

 
Iraqi prime minister pledges to root out militants

By The Associated Press | From Page: | Gallery

Poland’s PM: Ukraine’s war must be stopped now

By The Associated Press | From Page: | Gallery

 
Pro-Russian rebels lower demands in peace talks

By The Associated Press | From Page: | Gallery

US helicopter crashes in Gulf of Aden; all rescued

By The Associated Press | From Page:

 
.

Opinion

.

Living

Community Calendar: Sept. 2, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Inquiries begin into nude celebrity photo leaks

By The Associated Press | From Page: | Gallery

 
‘Guardians’ tops Labor Day, summer box office

By The Associated Press | From Page: | Gallery

TVGrid

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

Kirk rallies to win the Deutsche Bank

By The Associated Press | From Page:

 
Rockies top Giants after losing end of suspended game

By The Associated Press | From Page:

Dunn homers in 1st at-bat as A’s top Mariners

By The Associated Press | From Page:

 
Right guard Boone passes physical, rejoins 49ers

By The Associated Press | From Page:

Raiders name rookie Derek Carr as starting QB

By The Associated Press | From Page: B1

 
Armijo beats Vanden 2-0 to claim All-City boys soccer title

By Brian Arnold | From Page: B1 | Gallery

Armed with new deal, Chiefs’ Smith looks forward

By The Associated Press | From Page:

 
Column: Stewart’s Chase status doesn’t matter

By The Associated Press | From Page:

 
Raiders ink CB Dowling, 9 others to practice squad

By The Associated Press | From Page:

Serena Williams, Djokovic roll to US Open quarters

By The Associated Press | From Page:

 
Houston Astros fire manager Bo Porter

By The Associated Press | From Page:

Hamels, 3 Phillies relievers no-hit Braves

By The Associated Press | From Page:

 
.

Business

Markets drift as Wall Street has day off

By The Associated Press | From Page:

 
Austerity debate flares as Europe recovery fades

By The Associated Press | From Page: | Gallery

Civil disobedience expected in fast-food pay fight

By The Associated Press | From Page: | Gallery

 
.

Obituaries

.

Comics

Beetle Bailey Sept 2

By Daily Republic Syndicated Content | From Page: B6

 
Zits Sept 2

By Daily Republic Syndicated Content | From Page: B6

Wizard of Id Sept 2

By Daily Republic Syndicated Content | From Page: B6

 
Sally Forth Sept 2

By Daily Republic Syndicated Content | From Page: B6

Bridge Sept 2

By Daily Republic Syndicated Content | From Page: B7

 
Blondie Sept 2

By Daily Republic Syndicated Content | From Page: B6

Rose is Rose Sept 2

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy Sept 2

By Daily Republic Syndicated Content | From Page: B6

Sudoku Sept 2

By Daily Republic Syndicated Content | From Page: B7

 
B.C. Sept 2

By Daily Republic Syndicated Content | From Page: B6

Baldo Sept 2

By Daily Republic Syndicated Content | From Page: B6

 
Frank and Ernest Sept 2

By Daily Republic Syndicated Content | From Page: B6

Crossword Sept 2

By Daily Republic Syndicated Content | From Page: B7

 
Dilbert Sept 2

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse Sept 2

By Daily Republic Syndicated Content | From Page: B6

 
Peanuts Sept 2

By Daily Republic Syndicated Content | From Page: B6

Cryptoquote Sept 2

By Daily Republic Syndicated Content | From Page: B7

 
Garfield Sept 2

By Daily Republic Syndicated Content | From Page: B6

Word Sleuth Sept 2

By Daily Republic Syndicated Content | From Page: B7