The Davis City Council approved a new economic development strategic plan this week as city leaders grapple with a budget deficit expected to persist for years.
The plan outlines ways the city could expand its tax base while maintaining Davis’ identity as a university-oriented community with slow, carefully managed growth. Council members approved the plan but directed staff to conduct additional research on some of the recommendations.
City officials say the effort is necessary as Davis faces structural financial challenges. The city spent about $5 million more than it raised last year, leaving its general fund reserve at roughly 8% of spending — well below the city’s target of 15%. Officials anticipate another deficit of about $3 million this year…