Candidate for
Council Member; City of Millbrae

Millbrae has $72 million dollars of long term, largest amounts from the wastewater treatment plan, former RDA obligations, pension bond, and the library bond. Before we even think about undertaking any ambitious projects it is critical that we get the debt under control.

10% of our annual operating budget goes simply to debt expenditures. Instead of expanding our spending, we should be building our reserves. Millbrae has not followed its own policy of keeping 15% reserves for emergencies for over a decade. There is simply no excuse for living paycheck-to-paycheck. We already have the highest sales tax in the state of California at 9% which is higher than San Francisco which is at 8.75%. Sales tax is a regressive tax that punishes the lower classes inordinately more than wealthier individuals. High sales tax also discourages and harms local business.

We have had a special fire assessment at $144 a parcel since 2001. This assessment was made with the intention of funding and retaining our fire department. Because our fire services are being shared, this assessment now amounts to a slush fund that props up other General Fund expenditures. There is enough General Fund revenue to support both contracts with the San Mateo Sheriff's department and Central Fire District without the need for a fire assessment.

I am opposed to the fire assessment unless specific language is written to earmark revenue earned from the fire assessment is to be placed in a special revenue fund for ONLY public safety expenditures. If the issue is public safety, let's ensure our tax dollars are spent exactly as we are told they are for.

Site One is the biggest item on the table, and I support a plan that incorporate mostly a retail environment. Opponents of my idea suggest that retail businesses will increase traffic. I would suggest that these opponents look at the San Bruno BART and see the sheer amount of people who frequent Tanforan from Daly City, Glen Park, and Balboa Park areas who rely on the BART for shopping - and do not contribute additional traffic.

Furthermore, studies paid for by the city suggest that Site One is NOT an optimal site for a hotel and that retail would bring in the most revenue, services, and do the best good for the city.

A well planned retail development could easily bring in a tremendous amount of revenue. A well planned retail environment in the size of a lot like Site One could easily generate $100 million in gross sales which at 9% sales tax would bring in 9,000,000 or almost an additional million dollars into the city's coffers. One of my opponents wants a hotel on this land, which would not bring in the same amount of revenue or provide any additional shopping or services for residents. If this project began construction in 2014, it would cover any budgetary gap left by the expiring fire assessment in 2015.

The biggest issue on the table is finding a financially responsible way of dealing with employee benefits and the issue of OPEB. Rising pension costs will eclipse the present savings of the pension obligation bonds. The city has simply deferred the problem rather than solved it.

The city budget predicts a negative balance in the OPEB in as soon as five years. We need to transition to a defined contribution plan over a defined benefit plan for retiree benefits. If we utilize smart financial planning, we can grandfather existing workers and move forward in the right direction for future employees at a considerable cost saving measures. Plans such as my initiative to both pre-fund and enjoy a discounted ARC (annual required contribution) towards OPEB will save the city MILLIONS of dollars - why isn't the city government implementing these plans NOW?

The General Plan needs updating. Zoning in the city is atrocious. Why is there a 100 car parking lot next to city hall? Let's build more retail space there with below ground parking such as Safeway. There's plenty of space next to Safeway for another two-tier development. A retail business such as Target would easily bring in another $30 million conservatively in gross sales which would net another 2.7 million in tota, sales tax proceeds. This is a conservative estimate, as the Target stores in San Bruno and Daly City generate much larger gross sales volume than the "average" Target store.

Besides retail, we need to encourage the software side of high tech to develop in Millbrae. I am currently working on a project with a colleague named "Codecave" that borrows many of the successful ideas from startups such as Rocketspace which act as shared office space incubators for early-stage startups. These early stage startups will thrive in a transit friendly area such as Millbrae (280, 101, BART, CalTrain, and SFO airport access). These businesses will grow and establish roots in Millbrae, further developing the economy and the demand for high quality retail services.

We also can't forget the "mom and pop" businesses that made Millbrae great. Some of my personal friends such as Omar at Great Clips and Jackie at Eggettes are small business owners. I want an environment where we can all thrive, make money, and enjoy success. I've counted six empty storefronts on Broadway and the retail space by Shaw's Candy which are nothing but an eyesore. My first action as a city council member would be to implement a successful initiative that the city of San Jose used to revitalized their downtown - their temporarily suspended fees for building permits (for remodeling) and business licenses. Any individual who wanted to open a store was welcome at no cost from the city to give it a try. The small time fees we collect from mom and pop businesses are definitely minuscule in comparison to the amount of service and value a business generates.

All things considered - we must partner with the Millbrae Chamber of Commerce and actively work towards our goal of making Millbrae not just the best city in the Peninsula to live and send our children to school - but to work, play, and shop. There is no reason we can't have the next "Burlingame Ave" in Broadway someday.

I promise, if my plans are implemented that not only will your tax bill decrease - but Millbrae should be able to lower its long-term debt in half in 5-6 years. Realistically, I would require more than one term to get the city back on financial health and the cooperation of my fellow city council members - but we need to vote someone in who knows the numbers, knows business, and has a sincere desire to fix the city.

Please visit my issues section on my website dougradtke.com for details about my plan.

Help me fix the financials of the city. Vote Doug Radtke November 5th.