On Saturday, May 7th, the City Council reviewed and considered the draft 2005/2006 city budget and updated the 5 year revenue and expenditure projections.
Foster City is very fortunate in that we are, when compared to most other cities on the peninsula, in a very good financial position. This is a result of difficult choices and responsible actions of past city councils and staff.
In reviewing the five year revenue and expenditures projections, it is obvious that continued spending in the current fashion will lead to continued deficit budgeting, relying on well established reserves to balance the budget. I do not believe this is sound fiscal responsibility.
Having adequate reserves to utilize in difficult times is appropriate. However, I believe those reserves should be used for essential services such as public safety, public works, parks maintenance and necessary administrative functions.
I do not believe the 2005/2006 budget can be balanced and those essential services maintained without the use of reserves. However, I believe we can reduce our use of reserves if a more critical evaluation of non-essential services is accomplished.
During the city council review of the preliminary budget, I questioned expenses related to the Foster City TV station, human resources, administrative services, public works administration and several other functions. I do not mean to imply that the above functions are not important, I do mean to imply that a more critical review and evaluation of these functions could very well reduce the city’s dependency on budget reserves to balance the budget.
This is just one councilmember’s opinion; however, I believe it is based on a demonstrated history of actions and knowledge of fiscal responsibility.
I can be reached via e-mail rwykoff@fostercity.org.
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