City of Fremont Closing Budget Gap

The City of Fremont is closing its budget gap and forecasting a surplus in funds, according to the Fremont Bulletin.

At a mid-year budget review last week, city officials announced that the city is experiencing growth in consumer spending and taxable sales, along with an improved housing market and a better employment outlook than the rest of the county, the Bulletin reports.

Fremont’s unemployment rate is at 5.9 percent, compared to the 8.2 percent average throughout the county, Fremont’s finance operations manager Mike Sung told the Bulletin.

According to the Bulletin, Fremont home values and sales have also increased, with the number of foreclosed and bank-owned homes dropping.

Among sales tax increases, the city has seen growth in:

• the business-to-business sector, accounting for one third of sales tax revenue
• auto sales, accounting for one-sixth of the city’s sales tax revenue
• consumer goods sales, also accounting for one-sixth of sales tax revenue

City staff are projecting $600,000 more in estimated since their last budget meeting in December, and are estimating $600,000 less in costs and transfers, according to the Bulletin.

The city also received a $2.8 million property tax payment — $100,000 more than it had anticipated — from the housing redevelopment agency. The city is also expecting a $3.7 million payment from redevelopment for non-housing property tax. City staff suggested using former redevelopment dollars to be used for economic development and housing purposes, the Bulletin reports.

Due to the forecasted surplus, the city anticipates that it will be able to address some unmet needs during the 2013-14 fiscal year, which starts July 1.

Another budget presentation will be held May 21.

Read the Bulletin report here.