San Bruno officials pursue deficit relief

Though no specific direction was given, officials generally agreed more examination of the city’s financial health is in order and expressed enthusiasm for additional study over the coming year.

In her advocacy for the proposal, Vice Mayor Laura Davis nodded to a sentiment shared by Grogan, who encouraged officials to consider bolstering the budget while San Bruno’s financial footing is relatively stable.

“There is no need to be alarmed, but it is time to strategize and implement solutions,” she said, according to video of the meeting. “And I’m excited.”

Mayor Rico Medina shared a similar sentiment.

“I look forward to this,” he said.

Under the blessing from officials, Grogan will oversee a variety of efforts designed to reverse a trend of spending outpacing income which he hopes will also allow the city to finance a variety of capital projects.

Among the initiatives considered to be addressed include a fire station rebuild expected to cost between $10 million and $12 million, as well increased investment in local streets to the tune of about $6 million to $8 million, fixing the stormwater system and financing about $7 million in deferred maintenance.

To generate more money for such efforts, officials will seek to identify operational efficiencies, beef up enterprise accounts, examine fee structures and look into the feasibility of a new tax, said Grogan.

Should officials wish to pursue a tax as soon as next fall, Councilman Marty Medina said work should begin in short order.

“It’s going to have to happen pretty, pretty soon,” he said. “We should probably start talking about that.”

Grogan agreed, and said officials could begin laying the groundwork for the effort in the early part of next year. In all, he said the variety of efforts could push into 2020.

Beyond examining the potential for a tax measure, Grogan suggested it might be wise for the city to hire an economic development director who could oversee ways for San Bruno to broaden its business interests.

He also called for establishment of a long-term financial plan which projects as far as 10 years out into the future, beyond the city’s annual budget planning process.

Such an suggestion comes with acknowledgment that the city’s unfunded liability will grow through an obligation to increase payments to the pension plans for retired workers.

Grogan said he expects the city’s pension share will increase by $5 million over the next five years, with a projection that its allocation could rise by about $1.5 million in the coming year.

Reticent to paint too gloomy of a financial forecast though, Grogan noted the city is protected from some volatility by a hearty slate of reserves of more than $14 million dedicated to address emergencies, capital projects or annual budget shortfalls. He buttressed his optimism by noting the city’s budget is growing as well due to a healthy local economy.

With the variety of factors working in favor of the city’s favor, Grogan encouraged officials to move forward with examining the potential additional revenue streams during a period of relative economic health.

“Now is really the time to wrap our arms around the problem,” he said.

For his part, Councilman Michael Salazar agreed.

“Sounds like a great plan,” he said.

austin@smdailyjournal.com

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