Millbrae’s 2023-24 midyear budget looks favorable

Staff is also requesting $190,000 in expenditures for Public Works projects like street refurbishment and grant writing, as well as $180,000 more for the recreation fund — which they expect will be made up for in revenue due to popular demand for programming like classes and summer camps, Sung said. 

The city is also looking to increase the salary range for its city clerk position and reclassify its environmental services manager position to senior environmental services manager. 

Councilmembers are feeling positive about Millbrae’s fiscal future, they said during the meeting when they thanked staff for their hard work in ensuring the city stays financially responsible. 

“I’m just thankful and glad we’re able to balance our budget, but I just want to emphasize none of this is by happenstance. It’s because a few years ago, we were very conscientious in prioritizing economic development,” Mayor Anders Fung said. 

Fung emphasized the importance of ensuring the benefits of economic expansion — due in part to the creation of new jobs and welcoming biotech to the city — remain within Millbrae.

Councilmember Ann Schneider lauded the city for prioritizing its finances, especially as other San Mateo County cities face economic downturn and budget deficits. 

“I am very pleased and grateful for all the work all staff have done to keep us in line with our revenue,” she said. “I think we should be doing a lot more for climate change. I’m in full support of all staffing and grant writing, because that is a skill and that’s something added on top of the staff’s already full plate.”

She did express concerns around how the county’s purchase of the La Quinta Inn as housing for homeless individuals — still currently in legal limbo — could negatively impact the city and expressed ongoing support for funding legal fees relating to Millbrae’s fight against the purchase. 

“La Quinta is still floating out there, but it’s already hurting our other hotels because they’ve already lost the shuttle from the airport,” Scheider said. “The damage the county has done to the city has already started on that, hurting our hotels and restaurants.” 

Aside from the pending La Quinta purchase, which Millbrae says will cost the city significant revenue in hotel tax, staff are also keeping a close eye on how a debate around vehicle licensing fee returns will affect the city. 

Typically, the state returns property taxes to replace vehicle license fee revenue they took away from cities, but delay around the return is ongoing, Sung said. San Mateo County is one of three counties negatively impacted by the formula used to calculate the returns. 

Millbrae is additionally keeping a close eye on actuarial liability cost increases coming from an unfavorable return year for CalPERS, the state’s pension fund.