Revenue is up, but so are costs in Placer County
July 12, 2017
Placer County's Board of Supervisors unanimously voted on June 13 to approve a draft $796.5 million budget for the 2017-18 fiscal year, but it's a $19.3 million decrease from the prior year.
"While it is true that some revenue sources are increasing, such as a bump in transient occupancy tax over last year, the county's operational costs are rising at an even faster rate," said Chairwoman and District 5 Supervisor Jennifer Montgomery in a statement.
Concerns include the rising cost of fire services as well as employee pension and benefit obligations, according to the statement.
"We're seeing an essentially flat budget, but higher costs, and therefore services could start getting squeezed," she said. "So, it's important that we recognize this is going to be a challenge in the future, and we should be mindful about planning for that."
Placer County, not unlike other local governments throughout the state, will be forced to increase pension contributions in 2018.
The increase is part of a ripple effect after the California Public Employees' Retirement System Board of Administration took action in December to decrease its own investment to 7 percent from 7.5 percent.
Recommended Stories For You
In addition to rising employee pension and benefit costs, the county's budget is also smaller this year because of the amount of money currently tied up in major infrastructure projects, including the Kings Beach Commercial Core Improvement Project.
Amanda Rhoades is a news, environment and business reporter for the Sierra Sun. She can be reached at email@example.com or 530-550-2653. Follow her on Twitter, Facebook and Instagram @akrhoades.
Trending In: Local
- Truckee fire truck stolen, crashed in Tahoe City
- Chief’s Corner: How to stay on the road, and safe, this winter
- Town of Truckee looking to relocate downtown transit center
- 24 inches in 24 hours: Winter storm wreaks havoc on Truckee roadways
- Sierra history: Top 5 snowiest winters ever for the Truckee-Tahoe region
- Ritz-Carlton, Lake Tahoe sells for $120 million
- Update: National Weather Service issues blizzard warning for Truckee-Tahoe area; chain controls in place on I-80
- Update: Truckee police clear scene in Glenshire area, shelter in place order lifted
- (VIDEO) Winter storm expected to deliver several feet of snow to local ski resorts; up to 2 feet in Truckee, Tahoe