Candidate faces mayor in South City’s District 4

South San Francisco is facing a projected $8 million deficit for fiscal year 2024-25, but due in part to the substantial amount of American Rescue Plan Act funds it received, the city had previously operated in the black for several years. 

The ARPA funds helped support a variety of social programs and infrastructure projects, such as a guaranteed income pilot, broadband expansion and the ongoing Promotores program — which connects vulnerable residents with community health workers. 

Sharma said the city didn’t properly spend and invest its revenue during that time, citing the ARPA funds that went toward the programs at the Economic Advancement Center, which ended up assisting many nonresidents. 

“That program that was funded by the city largely did not benefit its own residents. It benefited the residents outside the city, which is the neighboring residents in San Bruno,” Sharma said. 

He added that the city’s decision to dip into its reserves this year should be alarming.

“It’s like a 401(k). If we are dipping into the 401(k) to manage our day-to-day, then there is something wrong with the picture. … On paper it may look good, but are we understanding the financial impact?” he said. “Reserves should be left alone.” 

The city is currently estimating a year-end total reserve amount of $62.8 million for fiscal year 2023-24, which ended in June. The previous fiscal year, 2022-23, saw about $63.3 million in total reserves by the year’s end.

If the projected $8 million deficit comes to fruition this fiscal year, the city intends to use about $5 million in reserve funds and $3 million from Measure W, a half-cent sales tax, to address the shortfall. 

Coleman said that the city’s reserves have largely increased since his time on council, and they were an important source of funds to address residents’ urgent COVID-related needs.

 “When I first got on council in 2020, 2021, we had around $50 million in reserves … so although we have dipped into it in the past, we have replenished it and actually grew it,” he said.

He added that the ARPA-supported programs provided critical insight to the city on what it should continue to invest in the long term. 

“It provided us with the resources to try new things,” Coleman said. “We’ve received a lot of data and a lot of successes with that, where we are comfortable using general fund dollars to keep these programs running because we see the impact it is having on families throughout South San Francisco and especially in our marginalized communities.” 

Development pushback: Municipal Services Building and Old Town

The Municipal Services Building, located on Arroyo Drive, housed several city services and departments for decades, including parks and recreation activities, though its programs were transferred to the Library and Parks and Recreation Center across the street, which opened at the end of last year.

The move has since angered many residents who have consistently shown up to council meetings since then, stating they want it to reopen as an additional community center, not housing, as the new recreation center does not have ample parking and is not designed well.

It’s become one of the most contentious issues the city faces. Residents, many of them seniors, have called for the building’s removal from the city’s housing element, a state-mandated blueprint that identifies potential sites for residential development. Pro-housing advocates, however, have stated the new recreation center offers more programs than the MSB ever did and that the movement is really to stop what they fear would be a potential character change of the neighborhood if affordable housing is built there.

Coleman said the city needs to undergo a robust process, which it has recently kicked off, not just to hear from various segments of the community but to also understand the feasibility of each option. 

“We need to be financially responsible when it comes to this decision. The reality is, we cannot just reopen the building tomorrow. We have to find funding for the capital costs … as well as finding dollars for the operating costs,” he said. “Are we going to have a path forward of hurling insults and fear mongering over what may come of that building, or are we going to choose a path forward where we all come together and find a future that makes sense for our neighbors? … I definitely choose the latter.” 

Sharma said spending $80,000 on a community facilitator, which was recently discussed at a council meeting, is not a good use of city funds. He added it’s unfortunate the building has already been identified in the city’s housing plan as a potential residential site and that the MSB would be best used as a multipurpose center, not for housing.

“The MSB discussion has been going on for two, three years,” Sharma said. “Do I see the need to save the MSB? Absolutely. I see a multipurpose use of it … why can’t we do that?”

The MSB controversy is emblematic of a larger dilemma many cities throughout the Peninsula face — balancing state-mandated housing production to alleviate an affordable crisis, while being sensitive to the concerns raised by long-term residents. 

Coleman said the increase in residential development is not just an order from the state, but it is also a moral obligation.

“There is a balance to be struck between new development and preserving existing neighborhoods. We need to be responsible in planning for new development, so that our longtime families who have lived here for generations also have an opportunity to plant roots and grow and start their families here in South San Francisco,” he said. 

But Sharma said there needs to be more accountability from elected officials and better engagement with the community. 

“People have been so out of touch with the City Council,” Sharma said. “There needs to be a more personal-level kind of outreach. “

For instance, Sharma said Grand Avenue is still in need of substantial improvements.

“Unfortunately, downtown is not vibrant at all. We have a homeless crisis. We have businesses having a hard time in managing that. There have been a lot of complaints that have been made that have not been addressed,” he said. 

Coleman said there has been a lot of development in the downtown and Old Town areas over the years, but there has been a concerted effort to grow and create walkable communities throughout all parts of the city, citing upzoning efforts in areas like Lindenville and the El Camino Real corridor. 

“In addition to creating denser neighbors, we have to make sure they are walkable, that they are near public transit, where they are near restaurants and markets and also planning for infrastructure … so that we are planning for communities that are truly vibrant and high-resourced,” he said. 

Environment: Electric infrastructure and Highway 101

Both Sharma and Coleman said they are in support of switching to all-electric buildings, especially for new development, but the issue is more complicated for existing homes, especially single-family dwellings, as full electric upgrades can cost tens of thousands of dollars. 

Coleman said he is more in favor of boosting rebate programs to incentivize electric upgrades. 

“I believe more strongly in using the carrot rather than the stick,” he said. “A big portion of this is going to be community education. Many do not know of the health concerns of gas stoves. They emit nitrogen dioxide which can be very harmful and many do not know that induction stovetops cook just as well.”

Sharma added that he is in favor of more rebate programs to encourage residents to switch, saying the city shouldn’t “become a burden to homeowners,” especially as they already pay enough for mortgages and property taxes. 

Environment and transit advocates throughout the county have also raised concern over the Highway 101 managed lane project, which opened toward the beginning of 2023 and stretches 22 miles from the Santa Clara County line to Interstate 380. The tolls adhere to a variable pricing structure, in which costs fluctuate depending on traffic congestion.

Coleman is opposed to freeway expansions, stating that it does not improve congestion but instead increases vehicle miles traveled. 

“In addition to that, the proposed expansion would increase the air pollution in our marginalized communities,” he said. “When we still haven’t seen a full recovery for our transit agencies, we should be asking if we really should be using our tax dollars to incentivize more cars on the road.”

Sharma said there needs to be more conversations with the potentially impacted neighborhoods.

“It’s important to have community outreach, discussion and involvement, not just depending on the studies,” he said. 

The election will be Tuesday, Nov. 5.