Pittsburg Budget Shows $3.6 Million Deficit, 13% Loss in Sales Tax

On Monday, the Pittsburg City Council held a workshop on its 2024-25 Proposed budget which shows the city is anticipated to be running at a deficit.

The city moved forward with the meeting without any documentations available to the public, presentation made available or details of what was to be expected.

Staff is projecting an increase of revenue by 3%, however, expenditures are expected to increase by 10% — creating a 7% gap which the council will use a future meeting to reduce spending.

Staff also said with the exit of Bombardier Transportation and Target, sales tax revenue will be reduced. They anticipate a 12.7% drop in sales tax revenue ($1.641 million) for 2024-25 before turning to growth in future years.

City Manager Garrett Evans said this would be the first of two budget workshops and in June could begin working with the council and subcommittees on cuts and possible ways to increase the budget.

Evans admitted right now that the expenditures are higher than revenue, but the goal would be through the workshop to get the expenditures and revenue within 1% of one another by the next workshop.

The budget also anticipates a $3.1 million increase in personnel costs which has yet to be finalized.  They have a total of 324 employees that are full-time approved and 3 additional positions which are not in the general fund.

During the Q&A, the council did not ask any questions with how it would close the gap or address how the city would increase its sales tax revenue in the future.

The presentation also pointed out several other cities dealing with budget issues which include:

• City of San Ramon – structural budget deficit of $14.1 millions shortfall
• City of San Mateo – anticipates deficit of $10 million
• City also said revenues are decreasing throughout California cities while pension costs are increasing.

Evens did say they had a good idea of how they would trim $3.6 million out of the

Related Stories:

• May 25 – Pittsburg Considering Sales Tax Increase on November Ballot: The  City of Pittsburg is considering placing a funding measure on the November 2024 ballot, asking local voters to authorize increasing the City’s sales tax by ½ percent (“half-cent”) to address pressing challenges presently facing the City’s roadways and bike lanes. Pittsburg City Manager, Garrett Evans, explains that the City is presently facing a backlog in maintenance of the approximately 345 miles of roadway, many of which include (or are planned to include) bike lanes, at an estimated cost of around $84 million. The present sales tax rate for purchases made in Pittsburg is 9.25%; under the potential measure, the sales tax would increase from 9.25% to 9.75%. If passed in the November 2024 election cycle, the measure will result in an increase of one penny for every $2 spent locally. A half-cent increase to local sales tax will generate between $5.5 and $6.5 million annually.