City considers cutting $2.3M (By Heather Murtagh, Daily Journal)
The Burlingame City Council will consider $2.3 million in cuts and revenue enhancements to address an estimated $1.79 million shortfall in this year's operating budget.
In November, officials explained the city faced a $5 million shortfall if it continued with the adopted budget for this year and next. A list totaling $200 million of unfunded capital improvements, rising employee benefits and decreasing revenue resulted in the City Council directing department heads to consider potential reductions to be considered Monday.
Of the $2.33 million in proposed cuts, $1.6M will come from delaying capital improvement projects. More than $700,000 will come from reducing operating expenses, downgrading vacant positions, transferring salaries to enterprise funds, re-bidding or delaying some purchases, reducing staffing on one fire truck from four to three, closing the main library two hours early on Friday evenings, eliminating a vacant police officer position beginning in May and eliminating funds for council studies, according to a staff report by Parks and Recreation Director Randy Schwartz.
Department heads were directed to produce a list with 5 percent and 10 percent cut proposals. Both are listed next to recommended cuts. Overall, lists include $4.55 million in possible reductions; $4.03 million in ongoing and $519,026 in one-time savings.
Capital improvement projects to be delayed include: the Marsten Pump Station outfall line, Easton Creek box culvert, increasing disability access to City Hall, replacing the cooling tower at City Hall, replacing the library carpet and synthetic turf at Bayside Park.
A number of potential revenue generating ideas, totaling $478,000, will also be considered including: shifting $200,000 of construction and demolition fees to the general fund; $5,000 from a $2 increase in cost to classes; $3,000 from extending the recreation building rental hours; $180,000 from increasing parking fines, which the council previously approved; and $90,000 from red light tickets from a yet-to-be installed camera at Broadway and El Camino Real.
Revenue has been down for years. The dip began after the terrorist attacks of Sept. 11 to just over $31 million down from a pre-Sept. 11 high of $41 million. Currently, the city is looking at beginning the next fiscal year at a shortfall of $190,000 before funding capital needs.
Before the losses, the city invested $8 million to $10 million annually to capital improvements like facility repairs, which has decreased to below $2 million in recent years. The result is the investment of less than $15 million for capital improvements instead of $64 million to $80 million.
The Burlingame Avenue area accounts for 20 percent of the city's sales tax revenue about $2 million. Upgrading the streetscape in the area is estimated to cost $32 million. Since June, the city has seen about a 10 percent decline in sales tax revenue, which is estimated to result in a $700,000 loss if it continues at that level.

– Written by Fiona