{"id":2160,"date":"2012-07-02T09:14:01","date_gmt":"2012-07-02T09:14:01","guid":{"rendered":"http:\/\/www.thesecretnewsonline.com\/?p=2160"},"modified":"2012-07-02T18:57:04","modified_gmt":"2012-07-02T18:57:04","slug":"emeryvilles-budget-approved-some-important-city-services-preserved-but-debt-a-staggering-250-million","status":"publish","type":"post","link":"http:\/\/www.thesecretnewsonline.com\/?p=2160","title":{"rendered":"Emeryville’s New Budget: Some Important City Services Preserved But Debt a Staggering $250 million"},"content":{"rendered":"

\"\"<\/a>The City Council approved a two-year budget for Emeryville at its meeting on June 19.\u00a0 It\u2019s our first financial blue print since the demise of Redevelopment Agency (RDA) funding, and it reflects the fact that building boom days are over.\u00a0 The fight to pay for key services and essential projects without RDA support now begins.\u00a0 Let me \u00a0offer some personal comments on our financial prospects.<\/p>\n

I\u2019ll start with a selection of good news.\u00a0 The city\u2019s early childhood development center (ECDC) will be fully funded and strengthened.\u00a0 Funding for our traditional community promotions grants and for ECAP has been found.\u00a0 Fire service expenses have been shifted to Alameda County at considerable savings to the city, and service has been enhanced.\u00a0 Funding to bring police services to full strength are in the new budget.\u00a0 Essential public works projects\u2014Marina dredging, sidewalk repairs, sewers, tree planting, maintenance\u2014are funded.\u00a0 Modest reserves are built into the new budget. Finally, provisions for the care and feeding of the city\u2019s General Plan are provided.<\/p>\n

But here\u2019s a look at the darker side.\u00a0 I reported last year that the city\u2019s long term debt stands at $165,474,763.\u00a0 When you add interest, our combined debt is $250,102,582.\u00a0 Funding that debt cost $8,601,997 in the fiscal year ending 30 June, 2011.\u00a0 That\u2019s a burden that will be with us in the new era, and we can\u2019t take it lightly.\u00a0 The new budget assumes, based on recent trends, that increases in business license taxes and sales taxes will occur.\u00a0 All budgets are a guessing game to a degree, and we can only hope these two assumptions are borne out.\u00a0 Cuts in city staff are part of the new budget, and two such posts are in key service areas: a community preservation officer and an arts coordinator, both previously held by admired public servants.\u00a0 The assumption here is that other staffers can handle these important functions.\u00a0 Well, we\u2019ll see.\u00a0 Finally, the capital improvements kitty in the new blue print is a modest $400,000, and modest it must be without RDA funds. I don\u2019t expect much from the efforts of the County Oversight Committee to win state approval of RDA programs already in the works.\u00a0 Some good projects will be lost as the state reels in RDA monies.<\/p>\n

Permit one final meditation.\u00a0 I\u2019m not optimistic about the broader financial universe in which Emeryville exits.\u00a0 The global economy is in distress with the United Kingdom in a double dip recession, the Euro Zone struggling to solve daunting problems, and stalled economic growth in China and India.\u00a0 Add political deadlock over the economy in Washington plus our own state\u2019s debt problems and you get a bleak picture indeed.\u00a0 So it\u2019s into a murky future we go.\u00a0 Let\u2019s hope our own modest plans are up to the challenge.<\/p>\n

Bill Reuter<\/strong> is Chair of the City’s Finance Advisory Committee. <\/em><\/p>\n

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