The Budget - the need for more revenue base
The good news on the budget is that it’s quit getting worse. Revenues appear to
have stabilized, though at the same level as a decade ago in constant dollars!
We’ve reduced expenditures three budgets in a row and have permanently
reduced headcount. In contrast to many cities around us, we have not dipped into
our budget reserves.
The bad news is that even with reduced headcount, the City's wage and benefits
keep rising. And we have major labor contracts to negotiate in 2006. Labor
unions have been very aggressive in their demands and strike actions in other
facilities in northern California.
Regardless of the outcome of labor negotiations and other efforts to control costs,
we must do more to protect our existing sales tax sources and develop new
sources. We need to seriously evaluate the feasibility of relocating the City's
current industrial uses from the Municipal Services Center (MSC) on East
Bayshore Road in order to redevelop that property as a site for automobile
dealerships. This could improve our revenues by $4-6 million per year with little
or no environmental impact..
A 3 year revenue enhancement plan can help restore our budget.
Few issues today are simple or black and white. Almost
all have a complex past or deal with competing, valid
objectives. Please give me a call if you would like to
discuss this or other issues in more detail.
Bern
Palo Alto Council Beecham retail business environment electricity electric water NCPA BAWSCA Judy Kleinberg Dena Mossar Yoriko Kishimoto Larry Klein
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Bern Beecham
Palo Alto City Council
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