GROWING OUR LOCAL ECONOMY

By Karen Woblesky

Over the past few years, the City of Santa Cruz has lost sizeable revenues from the closing of Texas Instruments and the sale/conversion of the Holiday Inn, to name only two. In addition, the continuing economic fallout from the technology sector, decreased tourist activity, and the anticipated and ongoing revenue losses from the State all work against our future economic health.

Although these revenue losses have been highly publicized over the past several years, there has been little City Council leadership shown or prudent financial adjustments made to counterbalance these changing realities. Despite City staff recommendations to the contrary, past City Councils have approved budgets where spending has exceeded revenues. The result of the City Council voting to approve these deficit budgets is that we have to use our reserve fund balance to make up the difference. We have now drawn our reserve fund balance down to roughly $5.4 million dollars, which is not much of a safety cushion if our City were to suffer another unfortunate natural catastrophe or a lingering recession.

Our community and the future City Council are now faced with making difficult choices because of these past decisions and the financial legacy we have inherited. We need to move Santa Cruz in the right direction. To me, moving Santa Cruz in the right direction means:

· a renewed commitment to fiscal responsibility;

· supporting our business community so they can be valued partners in the long-term economic success of our City;

· revitalizing our City government by instituting only the most efficient methods of providing City services to our residents;

· constantly preparing our community for future change by anticipating emerging trends and making appropriate funding determinations; and,

· establishing a task force that will make recommendations towards developing a Strategic Plan for a strong and vibrant local economy. For example, a Strategic Plan should:

- identify what our local economy could and should look like;

- define how we will recruit excellent businesses that will complement the existing restaurants, shops, and services we already enjoy;

- suggest how we can partner with neighboring communities, including UCSC;

- explore zoning options relating to multi-use development and reviving options for a hotel/conference center; and,

- identify how we can maximize our adjacency to the Silicon Valley to encourage increased tax revenues, economic investment, and attract visitors to our community.

This will not be an easy process, for we have been given a difficult task. However, I will work actively to bring people and interests together in order to develop solutions for our community. It is critical to approach these issues as part of a comprehensive plan, for the success of each component is dependent upon the others.

Our commitment to grow a sustainable local economy will yield real results and move Santa Cruz in the right direction by promoting long-term economic health, providing enhanced opportunities for wage earners in our community, and maintaining our quality of life. Together, we can plan for and achieve the maximum potential for our community.