Stockton’s $3.98M patch

Here’s some numbers underpinning today’s story on more bad news about the city’s waning budget. This is right out of a city report on the new holes in the general plan and the solutions to patching them up.

Notice the second-to-last line on the city’s reserves (or “contingency”) fund, which was $2M. Now, that’s $1M. Stockton’s Chief Financial Officer Susan Mayer said that puts the city in a “razor thin position.” That’s less than 1 percent in reserves. The industry standard is to have 5 and 15 percent, Mayor said. What does the second quarter have in store for Stockton?

General Fund: Action Plan for Known Budget Impacts 2011-12

Property Tax Revenues/Decline in Assessed Valuation (2,323,600)
State Budget/Loss of Vehicle License Fee Allocation (1,047,400)
Fire Overtime/Re-pricing to match leave policy (700,000)
  = (3,980,000)
New and carryover grant sources  
State Mitigation – Prison Hospital 347,000
Peacekeepers Grant 200,000
Police grant – Carryover from 2010-11 (COPS, JAG) 604,000
Measure W – Budget Plan B Labor Cost Reductions 742,000
  = 1,893,000
Vacancy Savings (from July 1-Sept.) 816,000
Service Reductions, without layoffs 196,000
Capital Project cancelations 75,000
Contingency (Draws $2 million balance to $1 million) 1,000,000
  = 3,980,000

For a different take on this, read this story in the Wall Street Journal. Here’s CFO Susan Mayer’s report to the City Council. And read Stockton’s 10-page disclosure to bond holders, but only if you don’t mind a headache.

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