Belmont's reserves dwindle

The city is also at risk of dipping below the critical reserve mark it has established in case of catastrophic emergencies, such as it faced in 1998 when heavy rains caused massive mud slides.

Revenue will remain flat for the city’s $15.4 general fund budget while inflation is expected to grow by 2.6 percent next year, said Brooke Lazzaro, the city’s deputy finance director.

A seven-year forecast shows the city’s reserves shrinking slowly up to the fiscal year 2014 budget. Belmont will end this fiscal year with about $2.5 million in reserves, lower than the $3 million the city desires.

Reserve funds are projected to fall well below $2 million by 2014 unless the city takes corrective actions by either raising more revenues or slashing more services.

To balance future budgets, Councilwoman Coralin Feierbach suggested its employees may have to take salary reductions to avoid layoffs.

"I don’t want to get rid of anybody,” Feierbach told the Daily Journal about balancing the city’s future budgets.

She suggested the city implement a two- or three-tier benefits package for new hires compared to the city’s current agreements with its workers.

Property and sales tax declines, the state’s fiscally irresponsible actions and the volatile economy are the problem, Lazzaro said.

The city was able to trim $1.29 million with this year’s budget with a 7.5 percent correction plan. Belmont will have to use about $300,000 out of its reserve to balance next year’s budget based on forecasting.

State takeaways have impacted the city’s budget over the past few years. The city, however, only expects the state to take away about $500,000 from its Redevelopment Agency based on Gov. Arnold Schwarzenegger’s May budget revision.

The city will try to recoup money from the California High-Speed Rail Authority for work its staff has done on the technical working group for the local part of the big state project and for community outreach.

Currently, Belmont does not have a city manager or public works director, which has saved the city some money. However, the city is expected to hire a public works director in June and is scheduled to hire a city manager soon after.

The hiring process has distracted some councilmembers from the budget process, however, as concerns over confidentiality came to light in regards to the city clerk reading e-mails intended for the council.

City Clerk Terri Cook presumably got a glimpse of some e-mails that contained city manager candidate’s resumes or recruiting documents that upset some of the council.

One citizen had sent an e-mail to the council who thought that it was going to the council only and not the city clerk, Mayor Christine Wozniak said.

Feierbach wanted the city’s protocol changed immediately.

The City Council voted 5-0 to keep the city clerk from viewing future e-mails addressed to the council.

Going forward, the mayor will forward any e-mails to the city manager who would then pass on the item to the appropriate department head.

The city is expected to adopt its fiscal year 2011 budget after a public hearing is held June 8.

Bill Silverfarb can be reached by e-mail: silverfarb@smdailyjournal.com or by phone: (650) 344-5200 ext. 106.