Burlingame budget prioritizing capital projects and debt

“I think you’re going to hear that a lot of cities have created structural costs that are no longer sustainable post-government support from COVID,” she said. “This City Council has been very clear and direct about not doing that, and in fact running this more like your household budget, where you don’t spend more than you take in.”

An upcoming net deficit of more than $6 million will be covered by further use of general fund reserves, according to a staff report, and is projected to recuperate by fiscal year 2028-29.

“We are continuing to run a deficit for the next few years,” Yu-Scott said. “Hopefully by 28-29, we are able to balance.”

Total capital improvement spending was proposed at $35.1 million, with $10.8 million from the city’s general fund and the rest from grants or other enterprise funding.

Capital improvement conversations focused on the largest request — $3.7 million for the upcoming Town Square Public Plaza. Because bids haven’t been received for the project and federal funding is still up in the air, the proposed spending number is fungible, Colson said.

“I would like to see us actually look at value engineering. Once we have the bids in, we combine that with private fundraising through the foundation and see what we can do,” Councilmember Peter Stevenson said of budgeting for the project. “This is a 100-year type of project.”

Other general funding for capital improvement projects included $700,000 for public playgrounds and $2.7 million for building facilities improvements.

The city will also plan to transfer $3.6 million into its debt services fund, although it’s forgoing a typical $500,000 for its pension fund, which currently has $18.9 million forecast in reserve for the upcoming year. Instead, the money will stay in the unassigned fund balance.

Currently, the city’s economic stability reserve sits at $20.9 million, its catastrophic reserve at $2 million and its contingency reserve at $500,000. Combined with money saved for pension trust funds, as well as unassigned funds, Burlingame is maintaining a total projected ending fund reserve balance of $42.5 million.

The city is planning to spend around 46% of its $81 million expenditure budget on public safety, including fire and disaster preparedness and police and dispatch services. Public works services are designated around $10 million and general administration $8.7 million.

A majority of the city’s revenue is coming from property taxes, with hotel tax coming in second — a change from pre-pandemic years, Yu-Scott said.

The city will have a public hearing on the budget June 17.