Millbrae budget begins to rebound

But unlike in years prior, that will be due largely to a reinstated spending, as general fund revenue for the coming fiscal year are expected to be $34.4 million, up nearly $4 million from the 2020-21 budget. Williams said the city is actually in good shape for the future “even if the macro economy continues to see some decline.”

He said hotel and sales tax declines combined for $14.9 million in lost revenue since the pandemic’s start. And while some of that was recouped thanks to $5.7 million from the federal pandemic relief CARES Act, spending was reduced in a number of ways, including by freezing staff positions and not hiring new employees, deferring vehicle purchases and facility maintenance and reducing contracted services.

“The last two and a half years have been extremely challenging, but we’ve been able to meet those challenges, and we’ve been able to persevere,” he said. “We did implement some pretty severe cost containment measures.”

This year, however, the hotel tax is on track to rake in $4.5 million, and the city projects it to be back up to nearly $7 million in the coming year, rising to $8.5 million in 2023-24 and $9.3 million in 2024-25, when total general fund revenue is projected to be $37.9 million.

Revenue from property taxes, accounting for roughly 40% of general fund income for the current year, are projected to grow by $2 million for the year coming. The city also expects to add to its income with multiple biotech-geared campuses slated to be built near the train station.

“Really what this means for us is more of a cash flow management issue and problem rather than a sustained deficit,” said Williams. “We’re in pretty good shape and our future looks pretty bright fiscally.”

As part of reinstated spending, the city plans to hire or reactivate several positions, among them a new Human Resources director at a cost of $246,800 annually, three maintenance workers for a combined $315,900, two new police deputies for a combined $450,000, five positions related to recreation for a combined $310,900 and three other positions in various fields for a combined $207,000.

A total of $29.3 million is planned to go to infrastructure and facilities improvements in the 2022-23 year, spending that will come from a combination of general fund and other sources, like grants and dedicated funding streams. More than 70% of that will be on sewer and water improvements for a slate of projects around the city. Street improvements will account for $3.4 million and parks another $2.7 million.

The city’s Bayside Manor Park and Marina Vista Park will each get $1 million for renovations, $200,000 will go toward planning a new park in Mills Estate, $200,000 for Central Park Tennis Court rehabilitation, $200,000 for police and fire station landscaping and $100,000 for repairs to the Central Park pathway.

corey@smdailyjournal.com

(650) 344-5200, ext. 105