Sales Tax Growth Projected in Walnut Creek Budget

There are notes of optimism peeping through the staff report that the Walnut Creek City Council considers as it makes halfway-mark adjustments and anticipates a balanced budget in both years of its biennial operating budget for 2010-12.

"Revenues as a whole continue to improve, mainly in sales tax revenues and in some of the smaller sources such as Transient Occupancy Tax," the report states.

However, the report adds, there have been late reports of erosion in property values, and thus taxes, as city staff monitors numbers coming from the Contra Costa County Tax Assessor's Office.

At the city budget's midpoint, staff recommends leaving property tax projections alone and increasing sales tax revenue estimates for a net increase of $495,000, an indicator of a revival of economic activity.

As to operating expenditures, the staff is projecting a downward trend — $61.4 million in 2011-12, down $300,000 from 2010-11, reflecting some staff layoffs and salary cuts approved a year ago.

The budget document also spells out adjustments in a variety of city fees and charges.

The council will meet at 5:30 p.m. Tuesday in a closed session to discuss labor negotiations. They are scheduled to continue the meeting in open session for the budget review and other agenda items at 7 p.m. at City Hall, 1666 N. Main St.