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Southgate staff warn of $8–$9.4 million structural shortfall; utility users tax presented as main option
Summary
City staff told the Planning Commission that without new revenue Southgate faces an $8–$9.4 million structural deficit on about an $80 million general fund and outlined options including a utility users tax that consultants estimate could generate roughly $9 million at a 7% rate.
At a Planning Commission meeting, city staff presented a fiscal overview showing a projected structural deficit "between 8 and 9,400,000" for the coming fiscal year on a roughly $80 million general fund and said one‑time reserves used this year are exhausted. Staff warned that, without new recurring revenue, the city would need either an infusion of roughly $10,000,000 annually to maintain current services or deep cuts across departments.
Staff outlined why costs have outpaced revenue, citing rising CalPERS pension obligations, insurance and health care increases, prevailing‑wage impacts on contracted services and inflation. The presentation said the city’s unfunded actuarial liability payment rose from about $6,000,000 in 2019–20 to about $10,300,000 in the…
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