On Monday, June 12, the Redwood City Council will present the 2023-2024 budget with adoption scheduled for June 26, which focuses on financial sustainability while reimagining city services to meet needs.
The City Council noted that the Recommended Budget is based on significant achievements during the last fiscal year and key priorities as the city continues to transition into its financial and community recovery strategy following the COVID-19 pandemic.
“Ensuring the financial sustainability of City services is a top priority during the upcoming fiscal year. While the City has projected deficits for some time, the slowing economy on top of losses from the pandemic requires immediate action to ensure we have the resources necessary to provide essential services,” said City Manager Melissa Stevenson Diaz.
“Our goal is to secure Redwood City’s financial future and continue to provide the vital services our community relies on,” he said.
Redwood City maintained essential services during the pandemic largely by keeping employee positions vacant, taking advantage of the City’s robust reserve levels and generous infusions of state and federal assistance.
As planned, they detailed, the projected deficit of $9.34 million for fiscal year 2023-24 will be offset by the use of one-time designated funds, thus avoiding the need for immediate cuts.
Yet even after negotiating benefit reforms, paying liabilities, managing costs, seeking grants and using set-aside reserves to protect services, staff anticipate structural budget deficits averaging $9.2 million over the next eight years.
Stevenson Diaz stressed the need to generate new sources of revenue to sustain services, stating that “while we use the resources entrusted to us wisely and are recognized for our high-quality work and innovation, we face significant financial challenges. Important work is being done to increase revenue and avoid service reductions in fiscal year 2024-25.”
The City is employing a multi-pronged approach to explore new revenue streams. This could include user fees and tax increases, new taxes, revenue generation from digital signs, and convenience fees for credit card payments.
The City has received state and national recognition this spring for its efforts to support key City Council priorities. Redwood City is the first city in San Mateo County to gain state approval for the housing element, and is in the top 4 percent of California cities to receive a Prohousing designation and nearly $1 million in additional funding.
The recommended budget for fiscal year 2023-24 is available at www.RedwoodCity.org/Budget, and can be consulted by whoever wants it.
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