The Sutter Creek City Council on Tuesday approved a resolution in support of the three auto dealerships - Amador Motors, Prospect Motors and Amador Toyota - closed last month due to various circumstances, including a steep sales decline and loss of financing from General Motors Acceptance Corp.
The resolution urged General Motors and its financing source, GMAC, to take action to restore the dealerships to operation.
The Jackson City Council, facing a similar loss of sales tax revenues as Sutter Creek and the county, took the same step at its Jan. 10 meeting.
The Sutter Creek resolution cited the loss of tax revenues to local governments, local job losses and lost income to local businesses resulting from the lost jobs, estimated at 80. The resolution also noted the fact that "the federal government is spending taxpayer dollars supporting GM and GMAC, the large corporations that can keep our dealerships in business."
Even though the dealerships are no longer located within the cities, the economic impact from their closures is significant. The direct impact to Jackson is a loss in sales tax revenue resulting from the sales tax sharing agreement between the city, Amador County and Sutter Creek. The 10-year agreement divides the sales tax revenue, less the incentive payment to Sierra West Business Park, between the three governmental entities. Last fiscal year, Jackson received $87,650 in general fund revenue from this agreement.
Sutter Creek Finance Officer Jeff Gardner presented the treasurer's report for October and November, revealing an increase in the city's budget shortfall to $175,000. A portion of the increase can be attributed to the loss of sales tax revenue from the Halvorson auto dealerships, which have been contributing $12,000 quarterly to the city's coffers.
Councilman Tim Murphy reiterated his request that the financial report format be simplified. Murphy later explained that the city has already agreed to come up with a one- or two-page format. "It's just a matter of getting it done," he said. "We need it in a format that can be shared, that's simple for the council and the public to follow."
Assistant City Manager Sean Rabe reported that the proposal made by the city to the Service Employees International Union, which represents city employees, was accepted. The city council voted to accept the the union contract that includes a 5 percent furlough and removal of the stipend to public works employees.
The three Sutter Creek City Council members voted into office last November also named their choices for the city planning commission Tuesday night, leaving the commission unchanged.
The council also re-elected Gary Wooten and Bill Hepworth as mayor and vice mayor, respectively.
Wooten appointed incumbent planning commissioner Robert Olsen for another four-year term, while Murphy reappointed Mike Kirkley. Newly seated Councilwoman Sandy Anderson chose to retain Cort Strandberg, who had been appointed by her predecessor, Brent Parsons. In naming Strandberg, Anderson said that she wanted continuity on the planning commission, which is immersed in the complex issues surrounding the Gold Rush Ranch and Golf Resort project.
| Staff Report |