4. Reorder Budget Priorites                 
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     The city generally does a good job of budget management. We have a reserve fund of about $8M and a balanced budget plan of $12.1M for '03-04. However, there was talk of deferring $1.1M in road maintenance, some of which has occurred (current budget is $0.675M + $1.33 M in street paving) while we spend $1.96 M on administration (16% of the budget) and $1.58M on Planning (13% of the budget) and only $0.46M on infrastructure. We will spend $0.5M on information technology and $0.7M on Finance but only $0.11M on storm drain maintenance and improvements.

     There are several examples of homeowners suffering the city's failure to resolve storm drain problems (1 widow has been cycled for 6 years because of the expense to the city of fixing the problem). The thought of spending at least $390K and up to $850K (and estimates are always low especially when no contingency is included) for ego satisfying Council Chambers at either Hesse Park or Point Vicente (this option was just voted down but the study cost remains)is sobering when our basic needs are underfunded. The cost of litigation which has been estimated at $3-4M is also buried somewhere in this budget.

     The city had $0.72M in Community Development Block Grants (CDBG) and was forced to sell $0.4M at 57 cents on the dollar and may lose the other $0.32M because it has not been spent. The city receives $0.24M per year so while the fact that sufficient funds were not available to complete the Alta Mira Canyon improvement project in Portugese Bend other possible uses including low to moderate income citizen projects, improving other blighted areas and retrofitting facilities to comply with the Americans with Disability Act appear to go begging. Some projects such as an elevator at city hall are planned but it appears that yearly expenditure of yearly funds would be prudent.

     We see $1.0M committed to open space purchase (see item 6. for additional costs) which is 34% of the capital improvement program but only $0.23M for building improvements most of which is for city hall.

     There is a difference between fiscal solvency which the city has maintained and setting priorities which is the council's responsibility. The fact that some or all of the $1.6M in vehicle license fees (VLF) may be lost puts even greater pressure on our priorities. Acareful review of "overhead" costs which may be as much as 35% of the budget and the current priorities is warranted.

     We also have $8M in reserves (67% of the budget) which is intended for high priority needs as well as emergencies; in general only safety and infrastructure meet these criteria and must remain fully funded at the expense of most everything else.

I will work to reset our priorities so that safety, infrastructure (public works), youth facilities and senior services are fully covered before the niceties of information technology and open space acquisition are addressed.

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