The first quarter of Foster City’s fiscal year, beginning in July, showed favorable revenue figures, though leaders are still cautious over an impending annual and structural deficit.
Stacy Jimenez
Based on a recent quarterly council update, general fund revenue was about $800,000 higher — at $5.1 million — than last year’s first quarter, in part attributable to high interest income, according to a recent staff report.
Stefan Chatwin
Assistant Finance Director Waqas Hassan cautioned that payments are often received at fixed times throughout the year, meaning income and expenditure figures could fluctuate from quarter to quarter. For instance, property tax revenue typically gets dispersed from county to city in April and December. Revenue related to vehicle license fees has been even more unpredictable in recent years , as it is distributed to cities directly from the state and often at the end of the fiscal year — and reimbursement is often not guaranteed. However, the city received $1.4 million this fiscal year in such funds compared to $667,000 during 2023-24.
Voters also approved an updated business license tax measure this November, accounting for the boost in revenue projections, though sales tax forecasts have been less favorable.
“That may be the new normal, so we don’t see that dipping and then coming back up in the near future,” City Manager Stefan Chatwin said during the council meeting Monday, Jan. 6. “But as you know sales tax can be very volatile, so what we see today could be very different from a year from now.”
Income from the recreation center dropped by about $100,000 between last year’s first quarter and this year’s.
Unlike the previous fiscal year, Mayor Stacy Jimenez said she hoped the city would focus on ways to increase revenue in the beginning of this year.
“Last year, it felt like at the end of the year we all of a sudden were taken by surprise that we ended up with a deficit, and so I want to make it very clear that we are starting out with a very clear message that we will end this year with a deficit if we don't do anything differently,” Jimenez said. “I would like us to come back … later this month and really take a closer look at our budget issues and look at ways we can try to close this gap.”
(650) 344-5200 ext. 102
(650) 344-5200 ext. 102
Daily Journal staff
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(1) comment
The most important takeaway for Foster City residents, “Unlike the previous fiscal year, Mayor Stacy Jimenez said she hoped the city would focus on ways to increase revenue in the beginning of this year.” Note there’s no talk of Foster City being fiscally responsible. Vote NO on any measures asking for more of your hard-earned money – it’s likely your money will be re-distributed to union workers and to fund their ever increasing pensions and benefits. Meanwhile, you’ll get the same sob story next year, and the next, rinse and repeat.
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