CONCORD -- The City Council on Tuesday voted unanimously on midyear adjustments to this year's budget that included an unexpected drop in property tax revenue.
City finance officials had predicted a 4 percent increase in property tax revenue this year, but the first half of the 2012-2013 fiscal year has shown otherwise.
While neighboring cities are experiencing property tax revenue that is stagnant or increasing, revenues in Concord have dropped 3 percent -- or 7 percent from what was budgeted -- for a shortfall of $1.4 million.
"In hindsight, we were not as conservative as we needed to be," said Interim City Manager Valerie Barone.
The annual midyear adjustments account for any change -- positive or negative -- to the fiscal year budget approved in June. This fiscal year is from July 1, 2012 to June 30, 2013.
The adjustments to the budget reflect a $1.84 million increase in revenues, excluding Measure Q revenue, and an increase in total expenditures of $1.81 million.
On the revenue side, the city has experienced a 5 percent, or $1.1 million, increase so far in sales tax, largely due to improved sales at city car dealerships, where sales tax revenue is up 31 percent for the first two quarters over last year.
There are also signs of more building activity, with a $415,500 increase in plan review and building inspection fees, according to budget documents.
The increase in expenditures is largely due to additional
The city also continues to be plagued by copper wire thefts. The updated budget asked the council to authorize spending $25,000 to develop plans for how to address copper theft at Camp Concord, and $325,000 to replace copper stolen from the BART path along Port Chicago Highway and in the area of Crystyl Ranch.
The council on Tuesday also voted 5-0 to loan $117,000 to the Local Reuse Authority.
David DeBolt covers Concord and Clayton. Contact him at 925-943-8048.