Listen to this note:
This coming Monday, June 10th, the Redwood City Council will consider the Recommended Budget for Fiscal Year 2024-25, with adoption anticipated on June 24, amid economic uncertainty at the county and state levels.
City Manager Melissa Stevenson Diaz said the City Council is committed to supporting the needs of the community while seeking to address the local structural budget deficit.
“The Recommended Budget reflects a careful balance between ensuring essential services and addressing our financial realities,” he said.
The City Council explained that through recurring budget commitments and more than $7 million in one-time special allocations, the Recommended Budget responds to priorities identified by residents.
In this regard, they explained that, among the city's preponderances are the continuous investment in vital infrastructure projects such as: road repair, sidewalk maintenance and storm drainage infrastructure improvements.
In turn, sustained funding for public safety services and ensuring the safety and well-being of residents, including maintaining current staffing levels for firefighters, paramedics and police officers.
Likewise, the preservation of essential community programs, including after-school and recreational programs for children, and maintenance of library hours and services.
To this end, and as a best practice, the City develops a 10-year forecast to project future revenues and expenses.
For several years, they said, the city has identified that current revenues do not cover the costs necessary to continue with the services provided and the updated forecast projects annual deficits of approximately 9.3 million dollars, a situation that various cities in California and the Bay Area face.
“We are a very agile organization that carefully manages expenditures,” Stevenson Diaz said. “We have supported economic development and attracted millions of dollars in grants to help fund service and infrastructure needs. While those strategies will continue, increased ongoing revenue is needed to maintain the services our community values.”
In November 2023, after months of study, the City Council authorized exploration of a revenue measure for voter consideration, and since April 2024 Redwood City has been focused on potential reform of the existing Business License Tax.
All Business License Tax revenue is legally required to remain in Redwood City; key goals for a voter-approved Business License Tax restructuring are to increase funding for basic city services and reduce the tax burden on small business owners.
Stakeholder outreach and analysis is currently underway and is expected to be considered by the City Council in July.
“Without new revenue, the City will need to consider service reductions in future years,” Diaz said. “This could impact all of the core services the City provides, including public safety, youth and senior programs, library services and parks.”
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