While some California cities teeter on the brink of bankruptcy, Santa Cruz is predicted to have a $1.5 million budget surplus at the end of 2013, according to City Manager Martin Bernal.
In a report given to the city council Tuesday, Bernal said the city has been helped by a rebounding economy, conservative spending and cuts taken by city workers two years ago.
"Despite the slow emergence from the Great Recession, we expect to complete the current fiscal year with a General Fund surplus and maintain a AA+ bond rating," Bernal said in a press release. "This is a testament to the financial restraint of the City Council and the talent, creativity and sacrifice of City employees."
There was a note of caution in the release: the city could be liable for a $1 million claim from a property owner whose land was damaged by a landslide near Branciforte Drive, higher health costs for employees, and the state's attempts to "claw back" redevelopment funds.
The city's new 2014 budget includes money for infrastructure, salaries and more public safety officers.
The city council will hold hearings on the proposal June 10 and 11.
To see the budget, click here.
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