Though city leaders scrambled to scrape up $1 million dollars this year to help cover the $6 million it owes to the public employees' retirement system, Capitola's financial outlook is "stable," said City Manager Richard Hill.
This week, the City Council is set to approve the city's $12.7 million budget proposal for the 2007-08 fiscal year. The bulk of the budget, 61 percent, goes to pay for city staffing while the rest covers contracts, community grants and supplies.
City finance officials said the proposed budget assumes the same level of services as the prior year.
"We're keeping the city humming," said Mayor Michael Termini. "We're doing the things that people feel are important: safe, clean streets; nice-looking parks; city events"
