Introductory background notes from Financing City Services, Chairman Bruce Banco in his presentation to the public invited Pacifica Democrats meeting, 2/18/12. These notes relate to City Council Meeting, 2/27/12, consideration items 6, 7, 8.
2. Pacifica has the lowest per capita revenue of San Mateo County cities.
3. The City General Fund pays ordinary city bills, the revenue requirement to support is currently about $27 million.
4. The City General Fund is the fund Pacifica Financial Services Task Force is concerned with.
5. There are other city specific funds, 15 total.
6. The City General Fund and Budget Reserve fund cannot deteriorate to $0, the money has to come from somewhere.
7 Making-up the General Fund short-fall has been supported from the Budget Reserves Fund, but the cushion is almost exhausted.
8. Declining General Fund revenue and Budget Reserves time-line: Fiscal years June, 2008, 2009, 2010 "free fall drop"; 2011, 2012 "gradual drop"; 2013, 2014, 2015, 2016 near "$0" or "$0". Budget reserve chart.
The city has a permanent, long-term deteriorating structural financial deficit. The Financing City Services Task Force was established 7/08, 4 years ago, to assist in 5 year revenue planning. And ultimately find a way to replace the prior Fire Assessment.
Although not discussed at the meeting, what exists as a Budget Reserve is likely monies returned from the Association of Bay Area Governments (ABAG) in defense of the North Pacifica LLC lawsuit. About $5.5 million was returned to the city, which probably occurred in 2010 changing budget cash reserves to a gradual decline for 2 years (2011 and 2012). Thus, the city only lost about $1.5 million fighting the North Pacifica LLC residential development, a conflict the city caused and aggravated. The lawsuit continued over a 7 year period. City losses include the approximated $1.5 million lawsuit short-fall, plus ongoing residential and community business sales taxes losses (the result of no development).
Posted by Kathy Meeh