LATHROP — The City Council on Tuesday, May 8 learned the extent to which the economic slowdown is hitting city bank accounts; gave a final stamp of approval to a new shade structure at Sangalang Park; and agreed to hire a real estate negotiator to buy several pieces of land for a public right-of-way.

All votes were 4-0. There remains one vacant seat on the council.

Struggling economy hits city
Already working with a pared-down 2007-08 budget, city leaders learned on Tuesday that the market has affected the city’s money supply more than anticipated.

Finance Director Terri Vigna reported that the city’s general fund had $364,000 less than expected as of March 31.

This is largely due to low sales tax revenue, Vigna explained. Expectations for sales tax, projected to hit $2.25 million by the end of the budget cycle June 30, has been dropped to a more realistic $1.7 million.

Property tax has actually increased over the city’s conservative estimates, Vigna said, because of new homes from prior years hitting the tax rolls.

A bigger shortfall has been avoided by cutting costs in City Hall and not re-hiring for some positions when there are vacancies.

The council will hold a series of meetings to talk about the 2008-09 budget in June.

Sangalang Park shade structure complete
The council has signed off on newly completed upgrades at Sangalang Park, located at 13470 Slate St.

Carter Construction installed the new 650-square-foot shade cover, two barbeques, two trash bins, three picnic tables, and new concrete for roughly $25,000, under the terms of an agreement OK’d in February.

That cost does not include the cost of the shade cover, itself, or the other items, which were purchased earlier. The total cost of the job topped $60,000.

Negotiator hired for land buys
Land negotiator Ron Palmquist will lead negotiations with several landowners at the intersection of Louise and McKinley Avenues so the city may widen that crossing.

The city is looking to buy three small chunks of land at three corners of the intersection, and one larger parcel at the northeast corner, to relocate a home too close to the roadway.

City planners said the city must buy the land so they can move forward with plans to widen Louise Avenue.

At $85 per hour, Palmquists’s services will cost the city $13,600. Fees paid by Assieh Development, developer of the Pacific Business Park, will cover the charge.