Millbrae budget remains on track

Aside from its revenue and expenditures, Millbrae has retained an unreserved fund balance of $11.5 million and reserves of $6.5 million, Sung said. 

“Good to see we’re generally in good shape,” Mayor Reuben Holober said. “I think the fact we came into the year with an $18 million fund balance and we’re going to end the year with the same amount is a very enviable position.” 

The city also saw a positive $300,000 uptick in its sales tax, largely because brick-and-mortar sales are picking up, thus giving Millbrae a larger portion of the county’s online shopping sales, Sung said. The county portions out the amount of online sales tax cities receive via a formula that takes into account in-person sales per city.

License and permitting fees went down $400,000 because of where the city is in its development cycle, but are offset by a $200,000 boost to service charges. 

Millbrae is facing some financial uncertainties, however, including a recent $470,000 charge for increased dispatch services from the San Mateo County Sheriff’s Office. Information about the excess charge has been minimal, Sung said, and they’re continuing to discuss it. 

“I don’t think this is a single city issue. This is an issue other cities are facing as well,” he said. “That’s something we’re looking at.” 

Like every other city in San Mateo County, Millbrae is also facing challenges with its Vehicle License Fee money. Because the setup of San Mateo County’s existing educational revenue structures doesn’t qualify the county for the full in-lieu VLF amount, representatives are left to haggle for the money each year.

This year, Millbrae received $500,000 less than the $1.6 million it’s owed, Sung said, and has sent a letter alongside the county to ask for the remaining funding.