Sacramento's 'Cost-Saving Measure' Wastes $500,000. The city of Sacramento had a plan: move the Sacramento Development Services Department out of a leased building and into a city-owned facility in order to save money. But it didn't quite work out that way. The Sacramento Bee reports that the city was unable to get out of its lease or sublease the old building, so the city will end up making a year's worth of rent payments for the building it no longer occupies. The cost to taxpayers is approximately $500,000.
The Bee reports: "In the private sector, the problem might have been a deal killer. But it didn't stop the department's move. Neither did the City Council, because department staff members didn't mention the glitch when they asked for approval." (Source: The Sacramento Bee, July 31.)
Cal-Taxletter August 8, 2008
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