Council budget work sessions continue

The city of Nevada's income from sales taxes and franchise taxes is looking pretty good and there will be no increase in the city's contract with Alliance to operate the water and sewer systems, JD Kehrman, city manager, told the Nevada City Council during their final scheduled budget work session before considering the 2012 city budget next month.

Kehrman told the council that the city's 1 percent general revenue sales tax is trending about 5 percent above what was budgeted last year and that was about 3.2 percent above what it was in 2009 and 2010.

"That's pretty close to what's happening statewide with sales taxes," he said.

Since the city is not looking at any large retail development, Kehrman told the council that he is following the recommendation of the city's finance manager to "stay conservative" with budgeting.

Based on that, he said that he is likely to recommend a 2-percent cost of living increase for employees this year. Last year city employees received a 2.5 -percent increase.

The city's sales tax and franchise tax are very healthy.

"I'm cautiously optimistic," he said.

"I think people's spending is getting back to normal," he said.

One item has changed in the proposed budget since the council started having budget work sessions.

There has been a reduction in the budgeted amount for the fire department, from a 3.2-percent increase to a 1.3-percent increase, he told the council.

The decrease comes from how overtime is used and through putting the department's equipment on a replacement schedule.

"This puts them in line with the other departments," Kehrman told the council.

"They're still getting everything they need," he said.