First, I think it is clear that we are facing the most unusual economic uncertainty the city has ever faced. We have, in the past, been blessed by innovative and responsible actions by both staff and city councils. As a result Foster City is in a unique position of being in an excellent financial position and not having to live under the cloud of panic in addressing the next few years relative to our budget. We must, however, recognize that we are facing the most devastating economic down turn in the history of Foster City without a clear picture as to when the economy will improve. Fiscal restraints now are imperative so that we can demonstrate the vision that is important for the legacy of this community.
I think we can all agree that in our budget considerations, we must be mindful of necessary safety measures concerning all our employees, as well as our citizens and business community. As the staff prepares the preliminary budget, they should be aware that no matter what budget policy direction is given, employee safety cannot be compromised and special attention must be given for all employees who face difficult and hazardous situations such as found in Public Works, Park Maintenance, Police, and Fire.
Secondly, I believe that it should be city council policy that the most critical and necessary needs of the city are 1) police and fire protection and 2) maintenance and repair of all public works infrastructure such as streets, lagoon, sewer, water, and levee systems, with the necessary resources to address the needs.
This is not to say that other city functions are not important. Indeed we must maintain financial services, planning and building, recreational amenities and programs, reasonable information technology, and an administrative staff to be responsible for insuring these activities are operated efficiently, effectively, and are economically well managed. All city departments are important to a well-governed community. It is the level of service that becomes a serious city council policy question.
Thirdly, I would like to propose that the city council give direction to the City Manager that the preliminary budget presented to the city council be a balanced budget based on projected revenue without the use of reserve funds, keeping in mind my prior comments. I am assuming, based on my prior budget experience, that the staff can present a budget that addresses necessary and critical services and activities, that does drain city reserves. I would also suggest that the City Manager present his recommendations for funding desirable but not critical or necessary services or activities. The council needs to know if these services or activities would require the use of reserve funds to balance the budget. If some of the services or activities cannot be accomplished in the balanced budget without using reserve funding, it would be up to the city manager to recommend, to the council, priorities based on previous council policy.
Internal Service Fund activities should be reviewed to determine if replacement life schedules are still valid. Information Technology and building maintenance activities also need review.
Staffing levels should be reviewed in relationship to necessary service levels and safety concerns for the public and city employee.
Let me be very clear. Foster City is not in a panic situation regarding the city budget. There are sufficient reserves and funds owed to the General Fund from the Redevelopment Agency to meet the needs of Foster City for the foreseeable future. That is, if we take the necessary steps now to insure that we first and foremost determine priorities for service in a reduced- funding environment. Desirable, but not necessary, services and activities can be prioritized by the City Manager for review by the city council to determine if reserve funds should be utilized. I believe it should be the city council?s responsibility to actively participate in the policy decisions to use city reserves to balance the budget.
You may recall that when I ran for the city council seat I now hold, I said I thought that the economic stability of Foster City should be our number one concern. I have not changed my opinion on that issue. Who knows what the future holds? I would like to see Foster City maintain at least a 25% General Fund reserve, if possible without reducing critical and necessary services and activities.
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