Sales-tax revenue projections for the city of Camarillo are being hammered by current economic conditions, although the city's finances are still strong, officials say.

Because of the housing market slump and "general consumer unease," Camarillo officials predict the city's General Fund revenue could be nearly $1 million lower than expected when this year's budget was adopted — with more than $750,000 of the decline blamed on sluggish growth in sales-tax revenue.

But fees paid by developers and other revenues are up by millions of dollars — more than enough to make up for the missing sales-tax revenue, officials say.

"The city is clearly in good financial health," City Manager Jerry Bankston said Tuesday.

The lower revenue projections appear in a report the city staff prepared for the City Council. Tonight, the council plans to discuss mid-year budget revisions. The city's fiscal year began July 1.

"We don't yet have sales figures for the holidays, but because there was a decline nationally, we're making the presumption we'll be down, too," Bankston said.

When the budget was adopted last year, the city had anticipated a 4 percent growth in sales tax revenue, but officials now expect a minimal amount of growth because of weakening retail sales including sluggish sales of building materials.

Also, because home sales have been slowing, the real-estate transfer tax the city receives from the sale of property is also projected downward by $150,000, according to the report.

Bankston said the holiday sales tax revenue figures should be available in about six weeks.

On the whole, the city's predicted revenue adjustments reflect a net increase of more than $5.6 million. Most of it — nearly $2.9 million — is the result of development fees.

And the report says there's good news on the horizon: Anticipated economic development along the Highway 101 corridor will boost the city's capacity to keep services at the present level.

Although the current financial picture for the city looks positive, the report notes that potential revenue impacts during the next several years must be monitored carefully.

Referring to the state budget proposed by Gov. Schwarzenegger in January, which includes a delay in gas tax payments to cities and counties, the report emphasizes the need for the city to continue to focus on economic development.

The report also asks for budget management "vigilance" in the face of a possible slowing economy.

Bankston, in an interview Tuesday, said Camarillo is not as reliant on property taxes as many other cities are. He said the impact of sales tax revenue matters more, so officials are watching it closely.