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Redwood City is now in a more comfortable position than other neighboring cities in the county to face a budget shortfall. It has a $21 million surplus in fiscal year 2023-24; but those funds apparently could not be touched because the city anticipates that the numbers coming in the next few years … will be in the red.
The money will be needed in the next two fiscal years, so there would not be much left to pay for essential services in the coming months, including salaries and the maintenance of the police force.
On Monday, June 10, the City Council discussed in a “study session” some of the measures that could be taken to address the crisis.
As we reported, Redwood City is considering including a tax on new business licenses on the local ballot in the November elections.
Prevention is cure
At the meeting on Monday, June 10, it was reported that a survey of residents resulted in a proposal to invest one million dollars in security cameras to be installed in some areas of the city.
However, this initiative did not go down well with some councillors.
Vice Mayor Lissette-Espinoza Garnica and Councilman Chris Sturkin said they would prefer to see at least some of the camera funding go toward programs that help keep vulnerable youth out of the criminal justice system.
According to Espinoza-Garnica, “the best way to invest that money would be to put emphasis on prevention services” (of crimes) instead of spending it on programs that are useful if the crime has already been committed or if the incident has already occurred.
“Using more police or cameras to combat crime is not going to reduce it,” said the Latina vice mayor. “That only perpetuates the cycle of criminalization,” she said.
The deficit: here and in Sacramento
Among the causes of the fiscal hole that is troubling the city is the possible refusal of the state government to pay Redwood City's share of motor vehicle license fees.
Typically California collects that money and reimburses it to municipalities during the next fiscal year. But as the state faces its own $28 billion deficit — according to Gavin Newsom's budget — Sacramento suggested three counties could Not receive those vital funds. And among them, is our San Mateo County.
Mayor Jeff Gee is optimistic that the refund will eventually be paid to municipalities.
“These funds are very volatile,” Gee said. But he also warned that “services and programs will have to be adjusted to the budget” available.
For fiscal year 2024-25, if the anticipated deficit is covered with that $21 million, there will still be a deficit of $15 million.
What to do and what not to do
According to a report submitted by the city, another cause of the deficit is the slow economic recovery after the Covid-19 pandemic.
The same report proposes cutting city spending by 5 percent if necessary, which would mean eliminating the downtown police unit, closing the Red Morton Community Center on weekends, and cutting youth and recreation programs.
What will not be suspended for now is the repair of sidewalks, the replacement of traffic lights, the construction of wheelchair ramps and the completion of work in the pedestrian zone on Broadway Street.
The next budget discussion will be on Monday 24th, and public comments are accepted before the date and in person on the same day.
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