Foster City is keeping an eye on cost escalations for its capital improvements projects amid rising costs, with overall city finances looking healthy.
Richa Awasthi
“We are seeing cost escalations for the CIP projects. We are a relatively young city, but our infrastructure needs repair. We have around 36 projects over the next five years,” Foster City Mayor Richa Awasthi said.
The council discussed budget issues around capital improvement projects — such as parks and replacing turf and other revenue enhancement options — at its March 28 meeting. Capital improvement projects focus on community roads, sidewalks, utilities and facilities.
Of the 36 projects, 26 are new, and 10 are existing. Existing projects include wastewater treatment plant improvements and its Levee Improvement Project, designed to keep Foster City safe from storms and high tides. Other new projects are improvements to parks, traffic signals, lagoons, water and synthetic turf replacement.
Awasthi said all cities are seeing cost escalation in CIP projects. However, she said the CIP cost escalations are not a heavy strain on the budget. More information will be available on the overall budget at a May 9 budget meeting.
“Every city is dealing with cost escalations, and we can’t escape that despite our strong financial position,” Awasthi said.
The city is considering an $8 million expense to maintain and enhance Boothbay Park, a destination park. Awasthi said that Foster City is looking at $30 million in park improvements and maintenance of its 24 park system in the long term. Council asked staff to analyze strategic needs and if that level of park maintenance is sustainable in the long term. The council will then consider the tradeoffs of not spending that much on its park system.
“Long term, we need to evaluate the $30 million cost and the sustainability of that,” Awasthi said.
Despite potential costs, the council favors replacing turf at local parks because of the environmental and water conservation benefits. It also wants to expedite a lagoon dredging project, with staff plans to evaluate project feasibility and options. Foster City would look at funding details and work with homeowner’s associations and neighborhoods.
The council is looking at additional revenue sources amid increased cost escalations and labor costs. It has expressed interest in potential changes to its business license tax to increase revenue. The council is exploring a gross receipts cap increase from business license taxes that would affect around 20 large businesses in Foster City.
Its overall financial picture also looks better after federal funding helped balance pandemic revenue losses. In February, a mid-year financial budget forecast indicated a general fund structural deficit of around $2 million. However, federal funding from the American Rescue Plan Act means the city is now projecting a surplus, Awasthi said. Foster City’s fund reserves remain healthy, despite the designation of around $19 million for use in Foster City’s Recreation Center Project.
(650) 344-5200 ext. 102
(650) 344-5200 ext. 102
Reporter
{{description}}
Email notifications are only sent once a day, and only if there are new matching items.
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
Only subscribers can view and post comments on articles.
Already a subscriber? Login Here
Dirk van Ulden said:
I am trying to figure out who Bobby Lee is. Why shouldn't we have a special day for Mark Olbert, another confused individual?
CoastalBoy said:
Success! An email has been sent to with a link to confirm list signup.
Error! There was an error processing your request.
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
(1) comment
It’s noticeable how Foster City is still looking for additional revenue even though they’re flush with cash. Hey FC, cancel some of your 36 projects instead of looking to taxpayers. Or is it because any additional revenue is going to be used for ever increasing pension and benefit packages? Good luck FC residents – it appears your wallets will become lighter. BTW, whatever happened with the geese poop problem? Does that count as an infrastructure project? Remember FC residents, you get the government you voted for.
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.