During the course of the last several budget sessions your city council has been struggling with the task of formulating a long range financial plan for our city. The process necessary to cure the structural deficit in balance with keeping services at a level that our community has come to enjoy and participate in is not easy. Many programs and city services are on the chopping block. There are differences of opinion on some of the potential reductions or eliminations in the budget, however, we all agree on one thing, we need to keep this city financially strong with a balanced budget.
We recognize that any rebound in the economy will be slow therefore we are looking at a variety of ways to attack the deficit. Expenditure reductions as well as reviewing salaries and pensions are areas being considered when compiling the long range budget plan. We are examining the city departments’ spending habits that drive up costs but I believe we need to dial in on more revenue generating opportunities as well. Recently, the council voted to put a transient occupancy tax increase on the November ballot. If passed by the voters, this will bring in about $300,000 additional dollars to the city. This tax, on travelers to our city, is currently the lowest on the Peninsula. Over the years we have been considerate of our hotel business owners and kept that particular tax at a lower level. It has been 8% for the longest time and we will ask the voters to raise it to 10%. This will put us in line with many other cities but still lower than others.
Partnerships and sponsorships are additional ways of securing funding for those activities, events and services that create a sense of community. I am grateful to the Lion’s club for stepping up to help us keep the Fourth of July Fireworks. As much as this is a costly day, it’s a traditional, annual, family event that we all look forward to. We’ve had residents help in cleaning up the day after as well. These are just a couple of ways that residents work together on behalf of their community.
No one wants to see any of the services or activities the residents have enjoyed, disappear or be put on hold for an indefinite period of time but something needs to change. We live in a time of uncertainty that is forcing local officials to find a new direction to be able to balance budgets and keep services intact. Several shared service models for our cities are being experimented with and implemented to offset the high cost of these services. These models must be looked at for the long term and not just used as a “band-aid” for the moment. Our city has a lot to offer with many quality of life amenities that make it a desirable city in which to live, work and recreate. The wonderful reputation of the city is fostered by its consistent policies and responsible fiscal management. We are in a position to act thoughtfully and carefully without the need for draconian cuts. I am not inclined to just cut the budget as much as I’d like to find creative ways to coordinate opportunities for long term revenue through partnerships.
I call upon residents to be a part of the process and think of new ideas and offer suggestions to help the council in rendering final decisions on services that are currently being considered for elimination. It’s time to think outside the box and we don’t have much time to discuss some of those items considered for elimination. We are not like the state lawmakers who go beyond the June date without a budget.
Please contact me about this and other issues by emailing me at: lkoelling@fostercity.org.
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