Elk Grove Proposed Budget For 2010 To Decrease by $5.3 Million

The Elk Grove City Council will hear a preliminary budget proposal at tonight’s meeting that will reflect a decrease of $5.3 million.

In a press briefing this afternoon, city manager Laura Gill said next year’s initial proposed budget will be $49.9 million. The current fiscal year budget is $55.2 million.

Gill said the decreased budget is the result of a precipitous drop in sales and property tax revenues brought on by the recession and international credit crunch. Gill and city finance director Rebecca Craig said that part of the budget cut includes eight furlough days per employee for the next fiscal year and a voluntary 4.8% pay cut for seven city executives including Gill and Craig.

Gill noted that Elk Grove is not unique in its fiscal difficulties and full recovery could be two or three years away. In the interim, Gill and Craig said the city will monitor revenue streams on a daily basis and will make fiscal adjustments as needed.

Tonight’s meeting starts at 6:00 pm. Check back later for a full report.