Layoffs coming to San Mateo

Layoffs are coming to the city of San Mateo and unless two taxes are approved by voters on the November ballot the city will have to endure even more layoffs, City Manager Susan Loftus warned last night.

San Mateo faces an $8 million deficit next year and has identified about $4 million in cuts it will make across the board in every department.

Two taxes, a quarter-cent sales tax and 2 percent hotel tax, are needed to make up the other $4 million the city is forced to cut from its $78 million general fund budget.

The City Council is due to adopt the amended budget on June 15 and will hold one more study session on June 8 to discuss the cuts.

The council held a hearing on the budget last night and most members of the public who spoke out on the cuts urged the council not to reduce library hours and to not reduce recreation services at the Joinville Pool.

The pool currently operates year round and if the two taxes do not pass the city is considering to open the pool only in the summer months.

The pool is home to the San Mateo Master Marlins, an elite competitive swim club.

"If you make Joinville Pool a summer-only facility, not only will you be closing the only public, municipal pool in the area, you will drive the Marlins away,” said Bob Leutan.

Branch libraries were also high on the list of importance for those who spoke out at last night’s public hearing.

Gretchen Warner has lived in San Mateo since 1961 and said the city’s libraries and schools were a big draw for her and her family.

"I’m afraid if you close one down it will never open again,” she said.

Revenues dipped in the city 3 percent from the 2007-08 budget to the 2008-09 budget, something Finance Director Hossein Golestan said is an occurrence that happens only every 15 to 20 years.

San Mateo has suffered significantly due to the loss of property transfer taxes from the sale of homes.

"Home sales are down and the city expects the property tax revenue to stay flat or even decrease,” Golestan said.

Public safety costs eat up about 56 percent of the general fund budget.

The police department will have $2.7 million slashed from its original $30 million budget and will lose several employees including a captain, lieutenant, traffic secretary and four other positions.

The fire department’s budget will shrink from $20.6 million to $19.4 million under the amended budget. Three full-time firefighter positions are slated to be cut.

The city will also likely to have to loan the state up to $2.8 million, something the current budget does not take into account.

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