Finance and Redevelopment

By John Hoffmann

We are not yet at equilibrium and more cuts will have to be made until there is income to provide the services we formerly had. That will likely be several years and meantime we must stabilize our finances. No one seems to have a clear idea of what to do in the near term except to say there will need to be more "internal economies". According the City Manager, all positions eliminated have been accomplished without firing anyone but those positions have been the front line, the policemen, the park maintenance staff, etc. There has not been a corresponding reduction in senior management although job responsibilities have been shuffled and a new Economic Development manager hired.

I believe the best course is to have an objective look at the entire city organization from top to bottom and take a very business-like approach to future decisions. We have a nearby world- class university on which me might call and there are many firms that specialize in organizational review for just such reasons. We should use those services to have the most efficient and streamlined city organization possible and only after that should the city consider asking the citizens to tax themselves more.

In the longer term, five or six years out, the answer is that the city needs to insure a new stream of income other than property assessments and other taxes. The most sensible course is to redevelop our prime asset, the corridor between 101 and Industrial Road to include a quality hotel and high volume stores selling quality goods. The transit occupancy tax will be paid by out of state tourists and sales tax will be paid by shoppers from throughout San Mateo County but San Carlos gets the money. This new income stream will go a long way toward solving our financial problems.