Project funds falling short in Redwood City

The combination of new and ongoing city infrastructure projects are projected to cost the city more than $412 million, including upgrades to filtration systems; road, pedestrian and cyclist safety improvements; park upgrades and other necessary community resources needing to be addressed.

But actual funding for those initiatives has fallen substantially short. The many funding sources directly dedicated to these projects include the city’s Utility Users Tax, revenue from other tax measures and in lieu fees but estimated funding resources only amount to about $156 million and are short by $256.4 million, staff said.

For this year alone, Michelle Flaherty, assistant city manager and administrative services director, said the city is about $20 million short of covering identified projects. Flaherty said staff is looking to state and federal grant programs to help fund some projects. Financial support could come through another anticipated state budget surplus or from the federal infrastructure bill, she said.

City Manager Melissa Stevenson Diaz noted that the city will be competing with jurisdictions across the state and country for those dollars and it’s still unclear what qualifications will be involved.

Meanwhile, the council and city staff are working to prioritize the city’s many projects. Senior Transportation Coordinator Jessica Manzi said staff use a data-driven approach for assessing the cost efficiency and urgency of a project but are also thinking of ways to incorporate an equity lens into the assessment.

“There’s just a balancing act with the most cost-efficient use of the funds with how to balance that with the desire to make sure we’re investing adequately in our historically underserved neighborhoods,” Manzi said.

Councilmembers expressed concerns about various projects including an upgrade to the aging Fair Oaks Community Center, Palm Park that abuts the YMCA property and is expected to hit the market soon, turf field upgrades and sea level rise.

Councilmember Jeff Gee’s concerns largely rested on deferred projects, which he said grow substantially more expensive to address the longer they’re deferred. And those costs are only being exacerbated by current construction and market conditions, he said. Public Works Director Terence Kyaw said the city’s facilities rating currently sits at a B rating which Gee noted is above the county’s rating of a C-.

Ultimately, Gee noted it would be difficult for the council to make a decision on which projects to prioritize without a thorough facilities assessment. And he also raised concerns about the lack of a capital improvement reserve fund.

He and Mayor Giselle Hale both backed an idea of establishing a capital project dashboard that would indicate what projects have been funded and which are still needing financial backing, an idea Flaherty cosigned.

sierra@smdailyjournal.com

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