Foster City faces layoffs

"Certainly, we're not going to lay off 31 people. There's no need for that ... we should not do it, we will not do it," said Mayor Marland Townsend.

The option is one of three set out by City Manager Jim Hardy at a City Council meeting this week. On Monday, the council will consider the options and determine which one to proceed with, Hardy said.

In the worst-case scenario, none of the city's nearly $15 million in reserves would be touched. The city manager's recommended budget scenario would use $2.7 million in reserves this year and $1.9 million in reserves next year. It would also require a reduction in 21 positions - five of which are currently filled.

Vice Mayor Rick Wykoff said he hopes those reductions could be made without layoffs - meaning some early retirements may be in order.

A third budget scenario outlines no reductions in staff but requires at least $5.3 million in reserves every year until the reserves are depleted.

The budget situation is caused by a number of factors. Revenue is on the decline and the state is taking away $1.85 million - or 7 percent of the city's general fund budget of $26.2 million. The state is also taking away $570,000 in car taxes.

The council will weigh whether or not it can still provide money to various nonprofits including Samaritan House, Shelter Network, the Hillbarn Theatre and the Foster City Chamber of Commerce. Funding for crossing guards, Peninsula TV and extra library hours is also on the table.

Wykoff said the proposed scenarios are drastic, but he was not surprised given the state's budget situation. Wykoff served as city manager from 1977 to 1994 and said this current budget situation is worse than 1978 when Proposition 13 went into effect. It's also worse than the early-90s recession, he said.

Still, Wykoff said he personally is not willing to increase taxes to make up for the shortfall. Residents, he said, have been taxed enough.

"I just think the public is going to say, 'Wait a minute, how far are you folks going to go?'" he said.

Budget meeting

The Foster City Council will meet 4 p.m. to 8 p.m. Monday March 29 at City Hall Council Chambers, 620 Foster City Blvd.

Jon Mays can be reached by e-mail at jon@smdailyjournal.com or by phone: (650) 344-5200 ext. 107. What do you think of this story? Send a letter to the editor: letters@smdailyjournal.com.