Tax revenues are expected to increase at modest rates next year and even more the next with the 10-year anniversary of the city. For the 2012-13 year and beyond, he said Goleta will get a larger portion of its sales and bed taxes under its revenue neutrality agreement with Santa Barbara County.
Rivera explained that the base budget — costs from staff, services and the contract with the Sheriff’s Department — is expected to level out between revenues and expenditures at about $14.3 million, but once increased costs in the safety contract and utilities are considered, the city is expected to be $1.14 million in the hole.
The public safety contract with the Sheriff’s Department accounts for $6.4 million of the city’s budget, and it’s scheduled to increase by $700,000 for the same number of officers, Rivera said. Other personnel costs come out to a little less than $5 million, with at least 75 percent of employees at the top of the salary scale, and supplies and services costs come out to about $3 million.
The City Council will discuss in later budget meetings the options for making up the difference, including increasing revenues, cutting expenses or using reserves.