City will maintain 'essential' services

Foster City councilmembers blasted the state for "stealing” $6.8 million in Community Development Agency funds and questioned whether to dissolve the agency altogether as a way to keep the state away from its money.

"We are tired of this ... the state bailing themselves out on the backs of cities,” Mayor Rick Wykoff said.

Councilwoman Linda Koelling agreed.

"We need to stand firm and shut the door against the state grabbing our money,” Koelling said.

Councilmem-bers even invited state Assemblyman Jerry Hill, D-San Mateo, to a budget session to see the impacts state takeaways have on the city after City Manager Jim Hardy said the city needed to work with Hill on state issues.

"We need to work with him? He needs to work with us,” Wykoff said.

The city will maintain its annual Fourth of July celebration, Arts and Wine Festival and Summer Concert Series at least for this year but warned the community last night at a special mid-year financial review that the events may be in jeopardy in the future.

The City Council tasked its staff back in July to define what services in the city should be considered "essential” and which should be considered "non-essential.”

City Manager Jim Hardy recommended the council to maintain all services in the city for the 2010-11 fiscal year as they currently are. City departments will not suffer any major cuts this year but it faces a structural deficit in fiscal year 2011-12 and many city services will be considered for cuts.

Foster City has a healthy reserve of about $21 million but the City Council has charged staff with balancing the city’s budget by 2013-14 without having to use its reserve.

Foster City plans its budget in five-year cycles.

Foster City Television may see its budget reduced as it provides services beyond what cities of its relative size provide, the council agreed.

The city balanced its fiscal year 2009-10 budget with a $7 million loan repayment from the Community Development Agency. The city is expecting another $1.6 million loan repayment this year to help meet its $50 million annual budget.

The council intends to review the budget quarterly instead of every six months to help anticipate how the budget will go over the next three to four years.

Consolidating departments and contracting out for services are both being considered to help balance future budgets. Human Resources and Information Technology were both discussed as services that can be contracted out.

"What can be contracted out or shared with other cities is something to explore,” Councilman Art Kiesel said.

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