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Deficit Shrinking

Sonora, CA — Going down, down, down … that’s what’s happening to the budget deficit for the City of Sonora.

Not so long ago Sonora was facing a $600,000 plus budget deficit due to reductions in sales tax revenue (double digit reduction), the recession and lower property tax revenue because of the downturn in the housing market. Adding to the reduced sales tax revenue; the closure of Mervyn’s and the move of the Sonora Carpet Mart from the Plaza Shopping Center. 

According to City Administrator Greg Applegate the good news is that deficit has been reduced to approximately $172,000 thanks to a hiring freeze, freezing positions, eliminating “cost of living” raises and generally becoming more efficient in the city’s overall operation.

Applegate adds that the effort will continue to reduce that deficit as much as possible in the coming weeks and months.

The mid-year budget review is one of the key items on tonight’s City Council meeting agenda. The “open to the public” meeting will start at five o’clock.

Written by bill.johnson@mlode.com