Small Business Development Center

Anyone who is familiar with the City of Belvedere knows that the City has limited commercial opportunities within its borders.  There are a few commercially-zoned parcels such as those within the Boardwalk Shopping Center and the few along Beach Road.  These areas are home to many “community-oriented” businesses that take great pride in serving the local community and heralding from “Belvedere” as their home base – Belvedere Land Company, Ireland-Robinson & Hadley, Inc., R&S Service Station, Bayside Garden Center, and more!   In addition to the commercially-zoned parcels, there are many in the community that operate home offices or home-based businesses – accounting, consulting, real estate, etc.

But the City does not have a “downtown” commercial and hotel area from which it receives “sales tax” or “transient occupancy tax” – also known as “hotel tax.”  The majority of the Boardwalk Shopping Center, all of the businesses along the southern end of Tiburon Boulevard, and Ark Row/Main Street businesses and hoteliers are all within the Town of Tiburon limits.  Therefore, unlike many communities, the City does not rely on “sales tax” or “hotel tax” revenue from local economic activity to support its annual operations.   In fact, sales tax revenues represent 0.7% or $37,500 of the City’s general fund revenue – as compared to neighboring Tiburon where sales and hotel taxes represent 11.1% or $770,000 of the Town’s general fund revenue.

However, that does not mean that the City is not supportive of local businesses and local business activities.  To that end, there are local business resources available to assist southern Marin business owners in obtaining fresh advice and assistance with marketing plans, economic development, raising capital and more!

The Small Business Development Center at Santa Rosa Junior College, funded in part by the Small Business Administration, has a mission of economic development. Their outreach offices are located throughout Marin County and meeting with their advisors is FREE, confidential and tailored toward specific business needs.  SBDC advisors are knowledgeable in a broad scope of industries and business management. Since opening their office in 1991, SBDC clients have had increased sales exceeding 66 million dollars.

In addition to their no cost consultations, the SBDC offers various low cost workshops and services related to managing a business. Need a guest speaker? Their advisors are available. Have an idea for a new product? Their Sawyer Center can advise how to turn your idea into a marketable venture.

How can the SBDC help you?  Visit their web site, www.sbdcsantarosa.org or call (707) 524-1770.  You can also read an Supporting Marin’s Econony featured in the Marin IJ on the topic.

One of the noteworthy characteristics of the Belvedere budget is its enviable position of self-reliance.  Careful and calculated measures are in place to ensure that the City’s finances are kept in that enviable position.   The City consistently budgets within its means; budgets for local priorities; adopts a budget that promotes fiscal responsibility; and adopts a budget that maintains compliance with an aggressive reserve policy.

The purpose of this post is to walk you through the City’s Budget from a basic description of its financial structure to proposed expenditures to a brief summary of coming capital projects to a summary of the City’s reserve policy compliance in the present and future years.

Budget Structure

The City’s accounting records are organized and operate on a “fund” basis, which is the basic fiscal accounting entity in governmental accounting.  Each fund is designed by fund type and classification.  The City’s primary funds are “governmental funds” which consist of General, Special Revenue, and Capital Project Funds.

The General Fund is the general operating fund of the City.  All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund.  Expenditures within this fund include general operating expenses such as Administration, Building, Planning, Public Works, and Public Safety.

Special Revenue Funds are used to account for revenues derived from specific sources, which are usually required by law or administrative regulation to be accounted for in a separate fund.  The City’s primary Special Revenue Funds include the Fire Fund, the Insurance Reserve Fund, the Gas Tax Fund, and the Road Impact Fee Fund.

The City’s Capital Improvement Fund is used to account for financial resources used for the acquisition or construction of major capital facilities.  The City uses the Capital Improvement Fund for projects such as Streets, Drainage, Lanes, Parks & Open Space, Community Buildings, and Utility Undergrounding Districts.

FY 2010/2011 Revenues

Revenues to the City’s General Fund consist of Property Taxes, Local Non-Property Taxes, Licenses & Permits, Fines & Forfeitures, Investments & Property, and Revenue from Other Agencies, Services Charges, and Miscellaneous Revenues.  General Fund Revenue projections for the FY are relatively flat.

Property Taxes

Property tax is the City’s single largest revenue source.  Property tax revenues consist of Secured, Unsecured, Supplemental, and Property Transfer Tax revenues.  In addition, due to State raids on local funds in years past, the City receives offsetting revenue from the State in the form of Vehicle License Fee Swaps and Educational Reimbursement Augmentation Fund revenues.  These revenues offset State raids on local property tax revenues.  In FY 2009/2010 the City budgeted for $3.5 million in total property tax revenues.  Actual property tax revenues received in FY 2009/2010 totaled $3.7 million.  Property tax revenues are projected at $3.6 million for FY 2010/2011.

Local Non-Property Taxes

Local Non-Property Taxes consist of sales taxes, business licenses and franchise fees from local franchisees – PG&E, Comcast, and Mill Valley Refuse Services.  In FY 2009/2010 the City budgeted for $279,693 in total non-property tax revenues.  Actual non-property tax revenues in FY 2009/2010 totaled $261,841.  Non-local property tax revenues are projected at $255,360 for FY 2010/2011.

Licenses & Permits

Licenses & Permits consist of construction, encroachment, and parking permits, as well as miscellaneous and revocable licenses.  In FY 2009/2010 the City budgeted for $266,000 in total license & permit revenue.  Actual license & permit revenue in FY 2009/2010 totaled $346,500.  License & Permit revenues are projected at $346,500 for FY 2010/2011.

Fines & Forfeitures

Fines & Forfeitures consist of vehicle code and planning/building penalties.  In FY 2009/2010 the City budgeted for $61,000 in total fine & forfeiture revenue.  Actual fine & forfeiture revenue in FY 2009/2010 totaled $336,500.  Fine & Forfeiture revenue for FY 2010/2011 is projected at $90,000.  Revenues are projected lower due to the unpredictability of planning and building penalty revenue.

Investment & Property and Revenue from Other Agencies

These revenue sources consist of investments, rents, In Lieu fees, Supplemental Law Enforcement Funding, and Reimbursements.  In FY 2009/2010 the City budgeted $250,776 in total revenue for these accounts.  Actual revenue received in FY 2009/2010 totaled $195,967.  Revenue for FY 2010/2011 is projected at $195,967.  Revenues came in lower due to lower than anticipated investment earnings.

Service Charges and Miscellaneous

Service Charges and Miscellaneous Revenues consist of charges for general counter services provided to the community, such as public works, planning, and building.  In FY 2009/2010 the City budgeted $256,550 in total revenue for these accounts.  Actual revenue received in FY 2009/2010 totaled $321,702.  Revenue for FY 2010/2011 is projected at $314,700.

FY 2010/2011 General Expenditures

General Expenditures

General expenditures for the City cover City Administration, Planning & Building, Police, Public Works, the Community Center, and Fire Services.  In FY 2009/2010 the City budgeted $4,501,710 for general expenditures.  Actual expenditures in FY 2009/2010 totaled $4,411,155.  Expenditures for FY 2010/2011 are projected at $4,384,990.

Fire Services

Fire Services covers the cost for fire protection services provided through the Tiburon Fire Protection District.  Expenditures in the FY 2009/2010 budget totaled $1,104,654.  Actual expenditures for FY 2009/2010 totaled $1,116,757.  The FY 2009/2010 Budget includes expenditures of $1,205,993.

FY 2010/2011 Capital Projects

Every City Budget contains capital improvement projects planned for during the coming year.  The Budget also includes a list of capital projects planned for in the coming five years.  This allows the City to project necessary transfers from the City’s General Fund Reserve to the City’s Capital Improvement Fund; begin the process for the application of grants or other outside funding sources; and coordinate with outside agencies for overlapping projects.

As discussed earlier, the City’s Capital Improvement Fund accounts for project in several different areas: Streets, Drainage, Lanes, Parks & Open Space, Community Buildings, and Utility Undergrounding Districts.  Routine projects include street paving projects, routine drainage improvement projects, and lane maintenance projects.  The major capital projects in the FY 2010/2011 Budget are as follows:

• Retaining Wall Improvement – At an estimated cost of $130,000 this project would replace an existing wood wall that is randomly supported with steel rails and columns.  This 7-foot high wall is showing signs of deterioration and movement.  A replacement concrete wall with stone facing will be built so as to provide additional roadway width along this narrow stretch of Beach Road (opposite 276 Beach Road).
• San Rafael Avenue Pathway and Landscape Improvements – At an estimated cost of $300,000 this project involve planting, irrigation, and pathway improvements along the frontage of Richardson Bay.  Planting at the gateway areas and at the Lagoon frontage will also be enhanced.
• Replacement of the City Hall Patio – Recent repairs indicate that the waterproofing below the City Hall Patio is reaching the end of its useful life.  At an estimated cost of $150,000 the patio and waterproofing will be replaced.  The patio area will be enhanced with planters and vegetation to soften the entry.
• Utility Undergrounding Districts – The Budget includes allocations for completion of the Bayview/Bella Vista Utility Undergrounding District and initiation of the Mid-San Rafael Utility Undergrounding District.  Districts are funded through local assessments against the parcels within the District.  However, as an accounting function, until the District is formally approved, the City budgets for the expenditures.  If a District does not form, the expenditures are not incurred.

At the meeting on June 9, the City Council will also consider the addition of funds in support of other local community projects.  Some of these projects are the result of local partnerships and others are in support of local requests.  For Council consideration will be the following:

• Tiburon’s Lyford Drive Modal Parking Project – The Town of Tiburon has asked that the City consider a financial contribution in support of the Lyford Drive Modal Parking Project.  This could represent an estimated cost of $50,000 or more, depending on Council authorization.
• Belvedere-Tiburon Recreation Building – Belvedere-Tiburon Recreation is a Joint Powers Authority between the City of Belvedere and Town of Tiburon forming a special recreation district for the Peninsula.  The City and Town are ultimately responsible for Belvedere-Tiburon Recreation as the founders of the Authority.  Belvedere-Tiburon Recreation has operated after-school programs at Reed Elementary School through a Joint Use Agreement.  These programs are one of the primary revenues sources for Belvedere-Tiburon Recreation.  With the explosion of the school population throughout the school system, space at the schools has become a priority for the school district.  As a result, Belvedere-Tiburon Recreation must find another location within which to operate its after-school programs.  Tiburon has offered to provide Town-owned land for such a facility to be built and is seeking a partnership from the City of Belvedere for development costs.  Costs are estimated at $250,000 for the City.
• License Plate Cameras – Early in 2010 the City Council voted to participate with the Town of Tiburon on the installation of license plate cameras on Tiburon Boulevard.  The cost to the City of Belvedere is estimated at $35,000 for installation and $1,500 per year.
• Recreation Master Plan – In mid-2009 the City Council opted to participate with the Town of Tiburon on the development of a Master Recreation Plan for the peninsula.  The cost to the City of Belvedere is approximately $12,500.

All total, these projects could add another $350,000 to the City’s Budget for the year.  The License Plate Cameras and Recreation Master Plan are previously approved projects, but as yet, unbudgeted (as there have been no formal costs incurred for which the City has been invoiced).  Once invoiced, the City Council will be asked to approve a Budget Amendment transferring Reserve funds to the 2010/2011 Operating Budget.  The Parking Project and Recreation Building are as yet, unapproved.

Budgetary Reserve Policy

In 2007, the City Council adopted a General Fund Operational Reserve Policy requiring that the City maintain six months General Fund Operating Expenses in Reserve.  Because the City is obligated to provide fire protection services, costs related to the provision of these services must be included within the City’s basic annual operating expenses.

In FY 2010/2011, the City’s basic annual operating expenses, including fire protection services is $5,590,983.  Pursuant to the Reserve Policy, the City’s General Fund Reserve must total $2,795,492 at year-end.  At the conclusion of FY 2010/2011, the City’s General Fund Reserve will total $3,569,012, well within compliance of the City’s Reserve Policy.

In 2010, with the adoption of the Budget, the City Council will consider adoption of an extended Reserve Policy making the existing Reserve Policy informally applicable to the 5-Year Projections.  In the 2010 Budget, the 5-Year Projections include a calculation for Reserve Policy compliance.  The Budget moves out of compliance in FY 2014/2015.

Because the City subsidizes fire protection services for the community from its General Fund Reserve, the amount of reserve transfer to the Fire Fund to make up the difference increases each FY.  In other words, the amount the residents contribute to fire protection services through the fire tax is insufficient to cover the cost of fire protection services so the City pays the difference with a transfer from its General Fund Reserve.  The City has been contributing General Fund Reserve toward the cost of Fire Protection Service since its inception.  The annual increase in the fire tax is not keeping pace with annual cost projections to provide fire services.  As a result, the drawn down on the City’s Reserves increases each year.  From a contribution of $494,620 in FY 2009/2010, the City’s contribution increases to $704,241 in FY 2014/2015.  The community may wish to consider increasing the Fire Tax at some point in the future to protect the overall City reserve.

The City Council will hear the Keynote Presentation on the Budget at their Special Meeting on June 9.  Because this meeting is also the final meeting on the General Plan, it will be webcast via http://www.cmcm.tv.  Actual approval of the budget is scheduled for the regular meeting of June 14.

We in California think we are alone with a State in budget crisis and local governments on the brink of that very crisis, but we’re not.  The preceding quote came from a blog of a Mayor in the midwest.

Whether you are working on your household budget, the budget for a small or large business, or the budget for a governmental entity, the process is likely complicated, challenging, and full of decision-making priorities.  Priorities mean that some things get funded and others, do not.  Worse, at the end of the day, some budgets are well-funded and others face a deficit.

But no panicking here, the City of Belvedere is not facing a deficit.  In fact, we can’t.  The City is not legally permitted to run on a deficit – unlike the State.  The State Constitution prohibits local governments from operating in terms of operational deficit financing.  We can issue bonds for large capital projects, but we cannot operate in debt for general operating expenses.  We can maintain a reserve.  In an agency that is primarily dependent on local revenue sources, a reserve is extremely important.

Each year, the City collects funds through various mechanisms to cover operational expenses as well as capital expenses.  Typically, our total revenue amounts to approximately $5.0 to $6.0 million, depending on specific grants or special revenues.   Our local revenue sources include:

• Property Taxes
• Sales Taxes
• Franchise Fees (PG&E, Comcast, Mill Valley Refuse)
• Business Licenses
• Permit Fees (Planning, Building, Public Works)
• Fines (Vehicle, Planning/Building Penalties)
• Service Charges
• Fire Tax
• Rental Income
• Project Grants

The City tries not to be dependent upon any outside agency (i.e. State or Federal) as a regular funding source.  But we do have a few:

• Supplemental Law Enforcement Fund ($100,000 per year)
• Gas Tax Fund ($45,000-$50,000 per year)
• Marin County Transportation Sales Tax ($26,000 per year)

The only debt the City holds is for a brief period of time as Underground Utility Districts are formed and operated.  Once established, bonds are sold and that debt is transferred to the Assessment District and the member property owners.  We have a balanced budget that is adopted every year – with little fanfare.   That budget covers the City’s operational expenses and capital expenses.  It’s not a complicated document and not that long – in fact, it’s available for download on the City website.  Check it out – it includes a Budget Guidelines section discussing the City’s various funds and fund types.

On Monday, March 8 at 6 pm staff will present the Council with a mid-year budget presentation.  That’s sort of a “what’s over and what’s under” presentation as well as a “what did we do” slide show.  Once complete, the City’s 2010/2011 Budget Cycle begins.

The City operates a pretty bare-boned operation.  We have a base team of expertise that know the details and run the different departmental areas, but we tend to use a lot of consultants that bring further expertise and result in a more scaleable operational structure.  A small agency, such as Belvedere, cannot afford to hire permanent extra staff – particularly when operational demands go up and down each year.  We do more with less on a regular basis.  Staff wear many hats both in and outside of their primary areas of responsibility.  The ability to multi-task, prioritize, facilitate, and educate while still meeting jurisdictional, legal, and governmental timelines across a plethora of projects is a must.

From a future budget perspective, the expectation is that property taxes will decline slightly over the next couple of years and then level off.  That’s the City’s primary revenue source.  When such a significant and primary revenue source declines, even slightly, the City faces tougher choices when programming out maintenance and capital projects in order to maintain a healthy reserve.

Through the budget process, we assess needs and set priorities.  You have opportunities to give input as the adoption of the budget is a public process for the City Council.  As you look at the budget, note that projected out over the next 5-7 years, the balance of the general fund at year-end (i.e. the amount in reserve) declines and other funds, such as the Capital Improvement Fund, increase.  This is due to the slow, but steady increase in general operating expenses, scheduled capital project priorities, single-year special project expenditures, and the addition of major unanticipated capital projects without alternative funding sources.  To meet future needs, funds are transferred from the general fund to these special purpose funds.  As budget years come into focus, projects without funding sources are either eliminated or funds are allocated from particular sources (General Fund, Grants, etc.).

The good news is that basic revenues generally outpace budget projections at year-end.  From current year to current year, the amount in the general fund at the end of the year is typically higher than projected.  This is due to the City’s conservative budget process.  For expenses, we nail down costs as concrete as possible for the budget.  For revenues, we nail down those as well, but project them conservatively.

The City Council reviews and prioritizes the City’s Annual Operating Budget.  Like a household budget, the City budget is always tight.  Our goal is to spend money wisely to meet the needs of the community, whether those needs are roads, sidewalks, tree trimming, public education and information, safety inspections, design review, long-term planning, park maintenance, pathway improvement, code enforcement, engineering, land-use, infrastructure projects, building permits, building inspection, public safety, deer, flood zones, noise, street sweeping, traffic, storm preparation, committee support, or more.

Challenging choices with challenging priorities in a changing environment.  But in Belvedere, we know we can make things happen to meet the needs of this community – it’s all a matter of finding the right solution.

Imagination Stirs Innovation to Realization.

Unfortunately, the State does not share the same sentiment and has balanced its budget with revenues dedicated to local government services.  The State’s recent budget adoption has resulted in the taking of huge amounts of money belonging to the CIty of Belvedere and hundreds of other cities, counties, special districts, and schools across California.  This “borrowing” of local funds will have a significant negative impact on the ability of local government to deliver its services.

Belvedere will lose roughly 8% or $300,000 of its general fund revenues from local property taxes.  Property taxes are used to provide a wide variety of local services including public safety, parks and facilities maintenance, capital projects, and the annual subsidy for fire services.  For more details, read the Fall 2009 City Newsletter coming to mailboxes this week…or the digital version online at:

http://www.cityofbelvedere.org/pdf/Fall_2009_Newsletter.pdf

In FY 2009-10, we will receive General Fund revenues totaling more than $4.64 million. General Fund expenditures are projected at $4.5 million leaving a projected year-end positive balance of $3.56 million (before transfers to other funds).

In terms of total revenue projected for all Funds, we estimate $7.18 million. Total expenditures for all funds are projected at $8.43 million. Expenditures are projected over revenues in FY 2009-10 in several areas. FY 2009-10 includes several large capital projects that will use “saved” revenues of Road Impact Fees and Capital Improvement Funds. In addition, revenues in the Fire Fund total only 59% of the projected expenditures. The balance is made up through a subsidy from the General Fund.

At this time, the budget does not include the impact of the potential borrowing by the State under Proposition 1A. It is estimated that this could impact revenues negatively by $250,000 – $300,000. The impact of the State take-away would show in revenues to the City at mid-year. It is my recommendation that the City evaluate its revenues at mid-year and make budget adjustments as necessary at that time. The FY 2009-2010 Budget includes a $460,200 transfer to the Capital Improvement Fund for current and future projects. The balance of the Capital Improvement Project at June 30, 2010 is projected at $699,202. The amount transferred to the Capital Improvement Fund could be reduced with the associated impact being that out-year projects are pushed further out.

Following is a fund-by-fund revenue and expenditure summary of the proposed budget.
GENERAL FUND

REVENUES – It is anticipated that the General Fund will generate an estimated $4.64 million in current year revenues. This amount is $179,768 less than the estimated actual revenues that will be received by the end of FY 2008-09 and $162,989 more than the FY 2008-09 approved budget.

The decrease in General Fund revenue projections against actual revenues is directly related to the conservative estimating of revenues due to the City including property taxes, construction related licenses and permits, planning and building penalties, and service charges. These reductions are offset by the inclusion of traditionally “unanticipated revenues” related to the Educational Reimbursement Augmentation Fund (ERAF) shifts at the State level. Staff does not traditionally budget for unpredictable ERAF revenues. In the past, these have been an unpredictable revenue source that could be dependent on State budget action. However, in the case of ERAF funds, the City received $270,000 in 2004-05, $240,000 in 2005-06, $265,000 in 2006-07, $429,370 in 2007-08, and $315,805 in 2008-09. It is anticipated that the City will continue to receive this allocation and therefore we have budgeted conservatively at $200,000 in 2009-2010.

EXPENDITURES – Expenditures for the operating departments in the General Fund will decrease $554 over the 2008-09 Budget. Overall, each budget has minor increases and decreases on numerous line items. There are no notable increases within any departmental budget.

FIRE FUND

REVENUES – In March 2008, Measure C was passed by the residents authorizing the adjustment of the City’s appropriations limit for the next four fiscal years in order to allow taxes already approved to be spent on fire protection and emergency medical services. For FY 2009-10, revenue from Measure C will generate $654,106, up 2.7% over the estimated revenues for the prior fiscal year. Without this revenue, the City would be required to expend this amount in addition to the current subsidy from the General Fund Reserve depleting the Reserve fund’s current balance in its entirety within 4 years.

EXPENDITURES – Even with this increase, the revenues continue to fall significantly short of what is required to fully fund the cost of services provided by the Tiburon Fire Protection District. The total required budget is $1,104,654. A General Fund transfer of $475,548 is included in the budget to augment the fund for the year.

CAPITAL IMPROVEMENT FUND

REVENUES –The Capital Improvement Fund will generate new revenue of $1,844,423 in FY 2009-10. This includes a conservative estimate of Road Impact Fee revenue – $125,000 and $1,625,000 for Utility Undergrounding Districts. Funding for the Districts come through assessment district bond sales.

EXPENDITURES – Capital Improvement expenditures in FY 2009-10 total $2.77 million. As mentioned above, $1,625,000 will be spent on undergrounding districts. Approximately $674,400 will be spent on various street and road projects to include spot repairs, slurry projects, and other projects as recommended by the Traffic Safety Committee. The majority of the funding and expenditures here comes from Proposition 1B and is allocated to the Peninsula Road Overlay & Drainage Improvement Project. Drainage projects for the coming year total $109,000 and include storm drain repairs at Bella Vista, Belvedere Ave @ Belvedere Way, and Beach Road. Park and Open Space projects total $153,700 and include improvements to the San Rafael Avenue Pathway, Beach Road Circle Landscaping, and miscellaneous other improvements. Lane improvements include work at the Harry B. Allen Stairs and Upper Woodland stairs at $52,000. Community Building improvements, $33,500, include repairs/replacement of portions of the City Hall patio and waterproofing. Lastly, 2009-10 expenditures include miscellaneous projects totaling $112,000, such as concrete/retaining wall repairs, study and surveys, sidewalk repairs and a disaster preparedness and recovery project allocation to be used on an as needed basis ($50,000).

OTHER RESTRICTED FUNDS

LEGAL DAMAGES AND SETTLEMENTS – Expenditures for legal expenses from the legal damages and settlements fund in FY 2009-10 are projected at $25,000. Anticipated expenditures in 2008-2009 were $1,000. At year-end, the anticipated balance of the Legal Damages and Settlements Fund will be $420,000.

EQUIPMENT REPLACEMENT FUND – The FY 2009-10 Equipment Replacement Fund includes the purchase/replacement of miscellaneous furniture and computer equipment. All purchases and replacement of major equipment and vehicles has postponed to mid-year after a mid-year budget review. The FY 2009-10 budget includes a fund of $25,000 for any necessary replacement of computer equipment and/or furniture.

CONCLUSION

In summary, recommended expenditures total $8.43 million and combined available revenue and fund carryovers total $13.25 million. As the budget is currently proposed, it is anticipated that the General Fund balance at the end of FY 2009-10 will total $2.58 million. The Finance Committee met on May 21, 2009 to review the proposed budget for FY 2009-10 along with the five-year projections.

Stated Reserve Policy: As adopted in 2007, the City’s General Fund Operational Reserve Policy requires that the City maintain 6-months General Fund operating expenses within the General Fund Reserve. General Fund operational expenses for 2009-10 are $4.98 million, inclusive of a transfer to the Fire Fund. The projected General Fund balance at year-end, exclusive of reserve fund transfers, is $3.08 million well maintaining a General Fund Operational Reserve of $2.49 million, consistent with the proposed policy. The remainder can be allocated to the City’s various outside funds for designation as infrastructure, equipment, or legal reserves as needed.

At the conclusion of FY 2009-10, the Capital Improvement Fund balance will be stable at $2.58 million and the Road Impact Fee balance will be $916,210, with allocations within the 5-Year Capital Improvement Plan.

I would like to commend staff’s hard work developing this document. Each year, City staff develops a budget that balances community priorities, identified revenue sources, and fiscal conservativeness to ensure that the City’s fiscal independence continues. This budget year is particularly challenging given the economic downturn of the economy. Key staff members consistently provide the input necessary to develop a successful budget. These staff members include: ACM/Building Official Lee Braun, Planning Manager Pierce Macdonald, Public Works Manager Scott Derdenger, Former Police Chief Mark Campbell, New Police Chief Steve Fracolli, and Deputy City Clerk Leslie Carpentiers. Special recognition is always due to Finance Office Becky Eastman who coordinates a very successful budget process. Belvedere is fortunate to have such professional and dedicated staff all of whom recognize the uniqueness of the community and feel as strong about preserving Belvedere as someone who has lived here all their life.

California Flag

On Tuesday I attended the Bay Area Council’s California Constitutional Convention Summit.  A copy of the Agenda can be found on the Bay Area Council’s website.   For those interested in listening to some of the audio, I recorded several of the sessions and have posted them on the City’s RSS Audio webpage.  

The Summit was hosted by the Bay Area Council and covered public opinion polling, the legal process, and reform priorities. Sponsors of the event were the Bay Area Council, the Center for Governmental Studies, Common Cause, Courage Campaign, Greenlining Institute, Joint Venture: Silicon Valley Network, League of Women Voters, Planning and Conservation League, New America Foundation and the William C. Velasquez Institute.  Jim Wunderman, Executive Director of the Bay Area Council, opined “…Our Constitution has been amended more than 500 times, leaving it more like the Winchester Mystery House – with rooms and stairways leading nowhere – than a well-reasoned structure of governance…”

Congresswoman Woolsey’s meeting brought local elected officials together to discuss local needs and how they might be addressed in a federal new ”New Deal.“ The discussion’s intent was not to identify specific local projects, as such, but rather to identify areas where the stimulus package might be directed that would have a direct local impact. The areas identified by the group of elected officials and local leaders included, but were not limited to:

* Green House Gas Emission Reduction Programs
* Clean Energy, generation and distribution
* Doyle Drive
* Local Transportation Infrastructure, such as, busses, ferries, rail, etc.
* Local Commute Infrastructure, such as, streets, roads, bicycle and pedestrian ways
* Sewer Infrastructure Improvement, public as well as private incentives
* Flood Control and Flood Plain Improvement Projects, seawalls, preventative projects, fish ladders, watershed issues
* Green Projects and Incentives, solar, vehicular, facilities
* Auto Dealer Support
* Vegetation Management Programs
* Fire and Earthquake Preparedness Programs
* Communication Issues
* Brownfield Cleanup
* Affordable Housing Assistance
* Residential Solar
* School Modernization
* Prevailing Wage

The ideas were promising and helpful as the Congresswoman returns to Washington to apply pressure where necessary as the stimulus package moves through Congress. While Belvedere continues to be in solid fiscal condition, the gap between revenues and expenditures can continue to close as the housing market slows both in resale and renovation. It is anticipated that if this condition continues for an extended period of time, Belvedere’s fiscal condition will become tighter and capital projects, purchases, and other similar type expenditures will begin to slow in order to keep Belvedere in its fiscally conservative and balanced position.