By Andre Byik

abyik@redbluffdailynews.com @andrebyik on Twitter

Red Bluff >> The Red Bluff City Council on Tuesday will consider adopting a 2014-15 fiscal year budget that for the second consecutive year would have the city spending more than it takes in.

The budget still has its share of cuts, thought.

In the proposed budget, the yearly funding of the Red Bluff-Tehama County Chamber of Commerce would be sliced in half, and police and fire department spending would be reduced 2.5 percent.

In its report to the full council the city's budget committee, made up of council members Wayne Brown and Rob Schmid, said those tough budget cuts are necessary to achieve a year-end cash balance goal of $500,000.

The city's budget committee estimates a general fund balance of $648,062 as it heads into in the next fiscal year, according to a staff document. The proposed budget ends with an estimated general fund balance of $516,801, a decrease of $131,261.

City Finance Director Sandy Ryan has previously said the city needs to maintain a fund balance of around $1.3 million, which would be two months of general fund spending. It is city policy to reserve 15 percent of general fund expenditures, which would be $1.2 million, for uncertainties and contingencies.

The increase in city costs is attributed to pay raises and benefit cost increases required by agreements made with the city's union employees that were conditionally tied to any increases the city saw in sales tax revenue.

A 4.5 percent increase in police, fire and miscellaneous wages is included in the proposed budget because of existing agreements. The increase comes at a general fund cost of $134,000.

See the article here:

Red Bluff City Council to take on budget proposal, shelter agreement