The City of Foster City is pleased to present its approved FY 2010-2011 Annual Budget.  The City Council approved this budget at its regular Council Meeting held on June 21, 2010.

In these challenging economic times, Foster City is not exempt from the economic challenges faced by local government.  The City moves into the new year with a healthy $20 million in General Fund reserves, but will require the use of nearly $3.5 million of reserves to balance the FY 2010-2011 budget.  There are significant uncertainties as to what the State of California may do in curing its budget deficit, however the City is in a good position to deal with any potential impacts from any State raids on local funds. The City will need to cure a nearly $3 million structural deficit by FY 2013-2014 in order to maintain General Fund reserves above 33%.

In addition, there are two significant events facing the Foster City Community Development Agency. Firstly, in FY 2009-2010, the State of California took $5.6 million of CDA reserves to balance its budget, with another $1.2 million due in FY 2010-2011.  Secondly, the Project One Area of the CDA will reach a milestone in hitting its tax increment cap of $170 million. This means that property tax revenues will no longer be collected by the CDA Project One Area, instead they will be distributed back to the other agencies which share in the property tax revenue allocations (e.g., Estero Municipal Improvement District, school districts, college district, and other agencies).

The Annual Budget includes the operations of the City of Foster City, Estero Municipal Improvement District, and the Foster City Community Development Agency.