Local

Pomona could see $12 million surplus by fiscal year’s end – Daily Bulletin

In the mid-fiscal year 2021-22, Pomona is looking at a potential $ 12 million surplus.

The excellent financial outlook results from higher-than-expected revenue, said Andrew Mowbray, the city’s budget officer, during a mid-year budget review on Monday, March 21st. Taxes make up 85% of Pomona’s revenue, according to Mowbray.

Highlights include a $ 2.7 million increase in tax revenue from the budget approved by cannabis businesses, property transfers and the temporary housing tax, also known as the bed tax, which the city collects from hotels. In total, the city is looking at $ 14.7 million from these sources.

While property taxes are expected to bring in $ 1.7 million less than last fiscal year, the city projects end the year with revenues about $ 1.2 million higher than the initial budget, reaching $ 41.9 million. The drop in revenue could be partly to blame for rising inflation, Mowbray said at the meeting.

The city also envisions spending savings, as overall spending is trending 4% below the city’s amended budget, with savings of up to $ 2 million compared to the current mid-year budget, a staff report said.

A portion of the $ 12 million surplus includes $ 6.8 million dollars of the American Rescue Fundthat Mowbray said could be used for potential revenue losses in the coming fiscal years.

The city predicts it will close the fiscal year on June 30 with a $ 37.9 million reserve fund balance – far more than the city’s minimum fund balance policy of 17%.

The city expects to spend $ 124.5 million this fiscal year with revenues reaching $ 136.8 million.

With a steady fund of rainy days, Mayor Tim Sandoval credited Pomona residents at the meeting for approving two tax measures in 2018, from which he said the city is now reaping the benefits.

The Measure PG was a 0.75 percent sales tax increase that would generate nearly $ 12 million a year for Pomona’s total fund, while the Measure PC set a tax rate of up to 6% of gross revenue for all commercial cannabis / marijuana activities.

“I want to thank the people of Pomona, because the fact is that we are seeing the results of that work,” Sandoval said. “This is the result of decisions that were made years ago.”

Sandoval said he hopes to reinvest some of the spare money back into the community, starting with youth programs. A discussion on those plans is scheduled for an upcoming special meeting, Sandoval said.

While they are preparing for the budget 2022-2023. The budget study sessions are scheduled for Wednesday, March 30, at 7:00 pm and April 6 at 3:00 pm.

Pomona could see $12 million surplus by fiscal year’s end – Daily Bulletin Source link Pomona could see $12 million surplus by fiscal year’s end – Daily Bulletin

Related Articles

Back to top button