Millbrae eyes budget blow

In response, officials are planning to cut about $8 million in spending which will leave a deficit of about $2.3 million to be covered with a leftover fund balance from previous years.

Noting the city will likely have only about $3 million in excess funding remaining after the transfer, along with $5 million in emergency reserves, interim finance director Emily Boyd urged officials to advance cautiously.

“We just need to keep an eye on that and be careful with what we are spending,” she said.

In all, officials are expecting to receive about $29.8 million in revenue in the 2021 proposed budget, down from the expected roughly $32.1 million in the current fiscal year.

The biggest losses are projected in transient occupancy tax, which should drop from $8.3 million to $4.7 million in the coming budget, and sales tax, which will drop by about $1 million to $2.2 million next year.

Meanwhile, spending is projected to reach $32.1 million in the upcoming budget, despite cutting spending in the Department of Public Works from $10.4 million in the current fiscal year to $4.5 million. Boyd said such a sizable reduction in the departmental funding will be possible due to the freeze on capital improvement projects.

Other cost containment measures include, to the greatest degree possible, establishing a hiring freeze; keeping vacant positions open; forgoing vehicle and technology purchases; deferring maintenance; and seeking recoupment from the Federal Emergency Management Agency.

Some officials also expressed hope Millbrae could apply for a segment of the federal relief package currently under negotiation at the nation’s Capitol. And while Mayor Reuben Holober expressed skepticism the current proposal would garner the support necessary to pass, Councilwoman Anne Oliva urged officials to rally support among local representatives advocating for the funding.

“Federal funding could make a huge difference to our budget,” she said.

Looking ahead, Holober said he was more focused on assuring Millbrae continues preparing its local economy to rebound. To that end, he called for advancing development projects which could bolster the city’s budget.

“There are things we can do for economic development that will pay dividends down the road,” he said.

In other business, councilmembers approved a letter which will be sent to the California High-Speed Rail Authority detailing Millbrae’s concerns with the transit agency’s station plan.

Claiming the authority’s idea for Millbrae threatens both planned and existing homes near the intermodal station, councilmembers drafted a letter responding to the authority’s proposed business plan.

For his part, Councilman Wayne Lee suggested some parts of the city’s letter conveyed too much emotion, which he suggested weakened its bargaining position. But Councilwoman Gina Papan maintained the letter accurately depicted officials’ disillusionment.

Ultimately, only minor revisions were made. Holober said he believed the document could already be paying dividends, adding state officials have recently reached out to discuss plans at the station expected to be the only high-speed rail stop between San Jose and San Francisco.

Vice Mayor Ann Schneider said she believes the letter is a fair assessment of the city’s position.

“I think the letter is fantastic. It reads very well and it is polite at the same time,” she said.

austin@smdailyjournal.com

(650) 344-5200 ext. 105