Redwood City seeks to foster economic mobility

“Income alone does not drive upward mobility; it requires economic success, dignity and belonging, and power and autonomy,” according to the staff report. 

For a single individual to afford to live in Redwood City, they should be making approximately $76,000 a year, and for a family of four with two young children, approximately $164,000, according to data collected by city staff. 

That data showed that 13% of Redwood City households are living in poverty, and 44% are “out of poverty, but can’t afford the local cost of living,” Assistant City Manager Michelle Poche Flaherty said. 

Disaggregated data show that Redwood City is considered “better” than other nearby cities for data points such as the percentage of children living in poverty, the average third grade reading scores, overall racial and ethnic diversity, and even rent burden. 

However, the city is ranked lower in areas such as income inequality and neighborhood racial and ethnic segregation, Poche Flaherty said. 

“Not everyone is thriving just yet,” Poche Flaherty said. “Not all Redwood City residents are having the same experiences.” 

The Economic Mobility Action Plan looks to optimize city policies and support systems to help residents move away from simply surviving or barely meeting basic needs, and get to a financial state where they can not only securely afford to live, but save for the future as well. 

To reach the action plan’s overall goals, which are projected for the next seven years, the action plan includes midterm metrics to indicate the city is moving toward those desired outcomes, and near-term actions that can be made by the City Council and staff to move forward. 

The near-term actions are intended to be completed within the next two or three years, Poche Flaherty said. 

For example, the plan includes goals to create at least 30 new job opportunities, submit multiple funding applications, engage over 150 residents in civic leadership development programs, and provide financial education services to more than 200 residents with a priority for those under the age of 18. 

Some of the action items in the plan were already intended by city staff and departments, but the action plan provides a comprehensive understanding of all the city can and will commit to do to support the financial health of its residents, Poche Flaherty said. 

The plan calls for the city to “use an equity lens and an economic mobility lens” to how the work is done and where the work is focused, she said. 

Councilmember Isabella Chu praised the plan, but said the city could reevaluate the standard by which the city should gauge the fiscal strength of its residents. Income inequality may not be the best metric, and the city shouldn’t be “penalizing ourselves” for having residents who are lower income. 

“It’s one thing to talk about really caring about equity, really caring about everyone in the community; it’s another thing to take concrete action to constantly try to improve people’s lives,” Chu said. 

The action plan acknowledges that the city cannot control major external economic circumstances that can have the biggest influence on residents’ stress about money. Pillars that will inform economic mobility of residents include rewarding work, high-quality education, opportunity rich and inclusive neighborhoods, healthy environments and access to health care, and responsive governance, according to the action plan. 

Still, the plan identifies what the city can work on in the next seven years to help families out, and what community partners are doing similar work. 

“While the city can lead, the city cannot do it alone by ourselves, and I want to make that clear,” Councilmember Jeff Gee said. “Whether it be health care, education … we need our community partners to do their part too.” 

The action plan will serve as a compass for future councils and what they should prioritize, Mayor Elmer Martínez Saballos said. 

“There is not just one solution to help a family be uplifted and find that economic stability,” Martínez Saballos said. “This plan covers all the things that would be helpful for nurturing success.”