Riding the wave of a booming economy, City Manager James Keene on Tuesday unveiled a proposed budget for the coming year that adds 17 new positions to the city’s workforce, including additional staffing in the Library, Planning and Community Services departments.
The proposed Fiscal Year 2015 budget, which the City Council received and briefly discussed Tuesday, further distances Palo Alto from the lean years of 2008 and 2009, when the city was freezing positions and trimming employee benefits. By contrast, Keene’s budget for the 2015 includes both new positions and raises for existing employees.
Overall, expenditures in the city’s General Fund (which pays for most basic city services not including utilities) would be 7.3 percent higher in 2015 than in 2014, or $11.7 million from the current fiscal year to the next. While the current budget includes expenditures totaling $159.7 million, Keene’s new proposal would raise the amount by $11.7 million, to $171.4 million.
In his presentation, Keene attributed the increases to the robust economy, which is bringing in more revenues — the city expects tax revenues to jump by $9.2 million between the current year and fiscal year 2015, which begins on July 1. The revenues are projected to grow from $83.8 million to $93 million.
Yet the economic growth has also brought new problems, chiefly a growing parking shortage and heavier traffic. Keene wrote in his transmittal letter that the healthy economy “has resulted in more jobs within the City and a higher demand for housing, parking and other City services.” The budget includes new positions that directly address the recent growth, including a land use analyst who will coordinate the city’s myriad planning studies and a new transportation planner.
Keene’s Tuesday presentation kicked off a budget-adoption process that includes a series of Finance Committee reviews and will culminate in an official adoption of the budget by the City Council in June. Though the figures could still change in the coming months, members didn’t express any major concerns with Keene’s proposal at Tuesday’s discussion. Councilman Greg Scharff called it a “well thought-out budget” and lauded the proposal to increase funding for the city’s expanding public art program (which will now have a designated public-arts manager), library staff and transportation measures.
The lattermost category includes $1 million for new shuttle services; $150,000 for establishing a new Transportation Management Authority (which will coordinate the city’s traffic-reduction efforts downtown) and $232,000 for various planning efforts relating to transportation and Safe Routes to School.
“I really think the priorities are the right ones,” Scharff said. “I’m really pleased to see the transportation funding. It’s critical.”
Other new positions relate to the recently scheduled fall reopening of the Mitchell Park and the Rinconada ( formerly Main) libraries. Staff is responding by unfreezing two positions in the Library Department and adding three new ones.
Under the proposed budget, Keene’s own office wouldn’t grow, but it would see one change. The budget proposes adding an assistant city manager position (raising the number from one to two) and eliminate an “assistant to the city manager” position. The goal of the change, Keene said, is to “provide a higher level of operational oversight.”
Other new positions include management analysts in the recently formed Office of Sustainability as well as the Community Services and the Development Services departments. A management analyst would also be added at the Palo Alto Airport, which the city is in the process of taking over from Santa Clara County.
Keene said the new jobs would raise the city’s staffing level from 1,019 to 1,036 full-time positions. He also noted that the number stood at 1,093 a decade ago.
The proposed budget also includes increased spending on compensation for current employees. It proposes a budget of $150.3 million for salaries and benefits in all funds, 7.3 percent more than this year’s total of $140.1 million. The reasons, according to the proposal, include increased pension contributions from the city, increased retiree health care costs and increases to salaries and benefits, consistent with the raises that the council recently approved under a new contract with the Service Employees International Union.
The budget document cites the various reforms that the council undertook during the economic downturn of 2009 to curb employee costs, including requirements that workers pay a greater share of health care and pension costs. Yet it also notes that while these strategies served the city well during the downturn, “it is also imperative for the City to remain a competitive employer while reducing the impact of fast growing benefits costs.”
To that effect, the budget sets aside “modest increases for salaries and benefits consistent with salary and benefits changes granted or agreed to across all employee groups during the last few years.”
Here we go again!
As for traffic and parking, I would rather have some money spent on high tech gadgetry to show where there are empty spaces in parking garages and lots with signage in real time. I would also like to receive notice of traffic congestion before I leave home rather than when I am stuck due to an accident, road construction or other delay. An app on my phone that I could check before getting in the car showing all delays in Palo Alto would really help – not just highways.
Let’s get spending some money on things that really help traffic in real terms, not just appeases.
@Resident,
It’s getting to where an App regarding traffic delays in Palo Alto is really pretty unnecessary – just go out your door.
I would much rather see us adopt a full-time Council, with their first job to be losing that many redundant positins.
Is it really more important to hire, for instance, a designated public-arts manager than to start being realistic about the actual future costs of employee pensions?
There is no planning for the future here- the City simply throws money
at problems which it has created or made worse. Conditions will continue to
deteriorate. Macro factors such as economic and financial and stock market
conditions, and the drought depending on next winter’s rainfall,will affect
the outcome here and trends here. The City has demonstrated that it has no ability to deal with anything in any positive way in terms of it’s own future.
I am excited to see the proposal for more support to Traffic Planning and Reduction.
With the success and growth in the region, traffic is only going to get worse. We need a strategic plan and operating budgets to act now on the plan. Palo Alto has adopted many multi-modal traffic plans that are the envy of many cities and lauded by the American Bicyle League. Staff is doing this on a shoe string budget.
It is nice to see the additional support so that Palo Alto stays a livable and safe community for our families.
The City Manager’s empire-building continues unabated. I hope people are keeping notes.
For example, Steve Emslie, former Planning Manager and Deputy City Manager is now working for a firm that has a PC office building project coming soon, on the VTA lot at the corner of PageMill and El Camino.
Isn’t there any ethics rule about how soon a city worker can go to work for someone with projects coming before the city?
Rule #1 – if the City has money it spends it.
Rule #2 – when the City later needs that money for something important, the ovine citizenry gets another fleecing.
Rule #3 – the City is like gangster Johnny Rocco in Key Largo, all the City wants, all the time, is “More. That’s right! I want more!”
If we continue to feed the beast it will grow more powerful and hungry with every bite.
Just because we are doing well doesn’t mean we need to go out spend the extra money right away. I think better to always run a little lean. Amazing that he wants to give 7% raises when the normal corporate world really only gets 3-5%. Crazy
What about the new police headquarters? Could some of the revenue be used to build a new, seismically sound one?
One hopes the city manager would beef up the Code enforcement personnel.
Currently there are only two Code enforcement officers for the entire city. This is woefully inadequate. One cannot blame these two individuals for amy inefficiency!
ENOUGH. Cut utility rates. Fix the infrastructure instead of trying to pass ANOTHER bond measure since you already have the money to pay for it.
NO MORE NO MORE.
Couldn’t agree more with profit’s point. Just because we have more money, it doesn’t mean we should spend it. I remain very concerned about the pensions PA employees have earned — will that stop with those hired now? And shouldn’t we bank some funds for a rainy day?
Can we get a new and different city manager too? Our current city manager needs to go.
Typical liberal mindset….get some money…..spend it…..then issue bonds to get more…..spend it……raise taxes and fees to get more……spend it…..
@anon
Yes we need code enforcement. We also need more traffic law enforcement.
The City on the ground as you travel around on a daily basis looks
uglier, less safe every day. The City is going in the wrong direction
and in a big way. What we need we don’t get, what we don’t want we get
more of, etc, etc. We are in a long downward spiral and it continues.
> Currently there are only two Code enforcement officers for the entire city.
> This is woefully inadequate. One cannot blame these two individuals
> for amy inefficiency!
It all depends on how you look at the problem. Just how big is “code enforcement” in this city—of only 25 square miles in area, most of which is down in the “flats”? Well, one problem with the current system is that the City won’t act without a complaint. I don’t know how true this is, but it’s pretty clear that given about 330 work days a year, two people with cars could do a lot more “code enforcement” than they are currently doing.
Could the police, or other City employees help out, by taking note of code violations, like the many real estate signs that appear on public property, or other kinds of signs that appear in the planter strips? They sure could—but it’s not likely that anyone at City Hall is going to promote a change in the work plans for any of these people—not when they can sit on their backsides, and do as little as possible.
The City did engage the services of an on-line application that allows people to notify the City about various problems around town—but this site is intended only for P/W issues. After more than a year, they still haven’t added any of the other departments—like code enforcement (which is currently in the Planning Department). They will forward a complaint, but the solution is still not appropriate for a City in the middle of the Silicon Valley.
So—anyone who believes that two code enforcement officers are not enough needs to rethink the problem, and try to come up with better reasons why more are needed other than “just because”.
No more raises for unionized city workers. No more hiring either, at least until there is substantial pension reform. We’re already signed up to support every city bureaucrats when they retire in their 50s with six figure taxpayer funded pensions.
Keene needs to be fired.
The product that the public gets for the money we spend is terrible.
Vote no on the new taxes as well. The icy has plenty of money. Why not underground our utilities or lower our utility users tax, since the general find is so flush.
Our government is a disaster. Please vote out all of the incumbents this November.
Dear 35yearresident;
you live in the largest liberal State in the Union. You sit here disparaging Liberals.
Texas waits for you. Can we buy you a bus ticket?
The article seems to be reporting that the budget calls for a spending
increase of $11.7 Million dollars and we expect tax revenue to go up
by only $9.2 million. I would like to know where the other $2.5 million
is expected to come from.
I also expected to see some of the revenue increase get tucked away for
the (next) rainy day or stock market disaster when we see a repeat of the
2008 crisis. And future tax revenue plunges again (as it will).
It is hard to watch the city personnel increase just as soon as we get a little more money. What is even worse is to watch one of our most important public buildings fall into decay. the Lucy Evans Baylands Environmental Center has been slowly falling into decay for several years now. This Center was the first to be built in the baylands in the entire region. It’s bay board walk was recently blocked off to access. The bay staff used to occupy the building which helps maintain a building, but it was abandoned for the smaller Harbor Master house. It almost seems deliberate.
I hope there are “Friends of Palo Alto’s Bayland Center” who will rise up during budget time and make sure funding is directed toward restoring this
wonderful building. I will do my part when the time comes.
It is hard to watch the city personnel increase just as soon as we get a little more money. What is even worse is to watch one of our most important public buildings fall into decay. the Lucy Evans Baylands Environmental Center has been slowly falling into decay for several years now. This Center was the first to be built in the baylands in the entire region. It’s bay board walk was recently blocked off to access. The bay staff used to occupy the building which helps maintain a building, but it was abandoned for the smaller Harbor Master house. It almost seems deliberate.
I hope there are “Friends of Palo Alto’s Bayland Center” who will rise up during budget time and make sure funding is directed toward restoring this
wonderful building. I will do my part when the time comes.
You MUST save for the “rainy day” that will come in the future. Having a saving account with money in reserve, is a very good idea. This has been a foundation of our country for over 200 years.
Save when you have a surplus, then spent when income is below expenses.
> I would like to know where the other $2.5 million
> is expected to come from.
The City’s revenue streams comes from various taxes, fees, fines, rents and grants. You’d need to look at all of these sources to see if there is offsetting revenue to make up the seeming imbalance between taxes and spending.
@Wayne, first comment did you mean 330 or 230 work days per year?
It’s great the City is running a small operating surplus this year.
But we still have an unfunded public pension/health liability of $250-400 million (Santa Clara County Grand Jury report, Stanford report last year).
The so-called “infrastructure backlog” is another $200-300 million, depending on what you consider to be part of it.
This is is a lot of coin. These things hang over us and our children, and I’d like to hope we’re looking at them as part of our overall financial picture, and not just, “whoopee, let’s go spend our bonus!”
It should have been 230 work days per year. Although with Police/Fire and other Public Service workers on the job 7/24/365, this number really is 365–at least from the problem identification/reporting point-of-view.
The Code Enforcement people would be on-the-job (more-or-less) about 230 days a year.
Sorry ..
w
wow.
After salaries and benefits are paid out, the remainder is $21 million, for everything else.
That’s a mere 12% of our taxes for improving our city’s physical structures.
Is this accurate? I feel incredulous.
And Scharff who is running for office thinks this is a good budget? who is the Mayor?
I’d like to know Schmid’s and Holman’s comments, please.
To Raymond… I generally fly first class. I live here because I choose to and can afford to. Doesn’t mean I have to like the foolish ways of those who govern the state.
They always hire, hire, hire but they never fire, fire, fire.
IF someone is held responsible in Palo Alto city government – as in, the buck stops here – for the Mitchell Park EXTREME building fiasco, and is fired, THEN I would support possibly hiring new staff in certain areas.
And yes, I also support re-storing The Baylands Center building and boardwalk. I would prefer funds spent directly on this, with public scrutiny, rather than hiring a bunch more people for nebulous positions with luxury benefits and pensions. And THEN, hiring consultants on top of that!
The disparity between life in this city government and the private sector is astounding.
Anything but fix the broken streets, eh?
I think most of the residents will be incredulous with this budget. I wrote previously that given a surplus, the bulk of it should go into a rainy day fund. Just like our weather, there will be rain sometimes. Clamp the lid on these absurdly high pensions and get our workforce to pay into them as the rest of workers have to. This is OUR money they’re playing with.
I give up fighting the shortsightedness Besides, the whole town is becoming Chinese. It won’t matter. Palo Alto will become another Cupertino, San Marino, Saratoga, etc. All Chinese.
Shouldn’t the money be instead used to fix the crappy roads and infrastructure of the town?
@HUTCH7.62
The roundabouts on Everett Ave have never been landscaped. A couple weeks
ago they painted the curbs yellow. We need an “Aesthetic Element” as
part of the Comp Plan as a starter.
Really, they need to make sure that existing positions pensions are fully funded before they hire.
I agree with Anon – “One hopes the city manager would beef up the Code enforcement personnel.
Currently there are only two Code enforcement officers for the entire city. This is woefully inadequate.”
Also, we need to spend the money on infrastructure.
The city has excellent planning when comes to spending. Now it can full time digging up the road and trimming. It’s no surprise seeing orange cones everywhere Ugo.
It’s correct that the infrastructure Consultant fee can be paid out but not the project itself. Bet!
Two Assistant City Managers to keep up with operations? Isn’t that the City Manager’s job? Is this so Keene can be away from the city even more than usual? Council should check in with Keene’s employees about his absences from the city. If you add up all of the days Keene is gone on boondoggles and various outside association meetings, the guy is never at city hall. Or maybe he just wants to spend more time at his house in Seattle? If so, he should RETIRE already. The city is paying for a part-time city manager. Don’t hire two Assistant Managers, hire ONE NEW City Manager.
the recently formed Office of Sustainability as well as the Community Services and the Development Services –
NO MORE WORKERS sitting around looking at the wall. Extra money is burning a hole in City Council’s pockets.
DO SOMETHING USEFUL- Decrease utility rates,j stop new condo, apartment, and office space building in Palo Alto- the residents DON’T WANT IT, how many times do we have to say that.
No more employees with cush jobs, huge salaries and endless fringe benefits and future retirement benefits. Learn to do without for once.
There are TWO Code Enforcement Officers. And 213 Managers and professionals.
What else do we need to know about the disregard of our zoning laws? The Manager sees to it that the rules are NOT enforced.
TWO Code Enforcement officers! It blows the mind. And explains everything.
Spend money on more low cost housing so me and my 6 kids can come to your schools. Also, can you open a marijuana club so I can get my medical marijuana in Palo Alto? You all are racist against marijuana users! My kids got ADD and they be having bad influence in our neighbor hood. Lil’Chewie was shot at the other day and my baby had to shoot back! Dis be crazy. If you rich folks let us minorities live with you we could learn your rich ways and get paid yo! I need housing, weed, and a free cell phone. And someone needs to take care of my kids with daycare program. Peace!
This is preposterous!! So many streets, especially north of the Oregon Expressway, are in miserable condition and this includes side streets downtown -like High and Addison. Some streets damaged in the Flood of ’98 are still— damaged. There are weeds and tall grass along prominent streets. Weeds even on Embaracdero. Only two code enforcement officers? Beyond inefficient and dumb. Why do we need more other employees?? There are so many fiascos on-going. And yes, the city needs to fix the wonderful Baylands Interpretive Center and the boardwalk, the latter a favorite in travel magazines and Sunset and were heavily used by residents and visitors. The council and city management had better wake up fast to the rising civic blood pressure of the residents…..now.
And please explain the remark above about the city manager and a home in Seattle? Sounds interesting. Is the manager away alot? Benest was.
How about either:
(a) saving the money for a rainy day
or
(b) funding fixes to our broken infastructure such as roads, storm drains, and the like?
Every time we ask for infra fixes, the city says it’s out of money. These are simple (ish) projects not requiring fancy architects or massive (e.g. 3yr flintco) long-term contractors. It’s just roads and pipes – let’s get to work!
Palo Alto does NOT have a surplus. Instead, Palo Alto has a HUGE UNFUNDED pension liability. Palo Alto has yet to curb the salaries and benefits of its workforce. They have too many workers already and hiring more this year will only exacerbate the financial mess that our City Councils have created over the years. City Manager Jim Keane needs to be reined in.
Palo Alto does NOT have a surplus. Instead, Palo Alto has a HUGE UNFUNDED pension liability. Palo Alto has yet to curb the salaries and benefits of its workforce. They have too many workers already and hiring more this year will only exacerbate the financial mess that our City Councils have created over the years. City Manager Jim Keane needs to be reined in.
Hopefully at least 5 people on City Council have sufficient civic memory to recall that it isn’t all that long ago that our financial picture wasn’t rosy. Also, as JS points out, we still have serious pension obligations. I agree w/JS’s conclusion that Keane needs to be reined in.
Our City Council acts in a vacuum. If it doesn’t rain next winter the
picture here could change drastically. Secondly, the tech sector has come under selling pressure in the financial markets in recent weeks and the IPO market has weakened. The economy in PA is directly related to market conditions. Just the drought alone requires caution. Our Council and staff
are oblivious to everything- macro factors down to neighborhood impacts of
their reckless policies and actions.
Why is the Baylands Environmental Center being allowed to decay? It is a big asset and the City Manager / infrastructure maintenance is neglecting it.
To: Revolving Door.
They CITY doesn’t CARE!! If it did, it would fix Hamilton and Forest Avenues – and all the side streets ruined by the flood of “NINETY EIGHT!!” Downtown side streeets and many in Crescent Park are a third-world disgrace. So is
Waverley along billionaire row and surrounding streets. Really sad in residential GoogleLand. More $
? To Do what? Manage other managers? I’m fed up. And I’m not alone.
The City Council and staff do not understand, care, see or worry about anything to do with quality of life, city or neighborhood character, aesthetics, ambiance, traffic, congestion, environment. The City
is sinking like a rock in all these respects- it has crossed the line.
When I travel and return here I am struck each time at how Palo Alto is deteriorating and degrading. Project these trends out a couple more years.
Instead of just blowing away all potential surpluses, how about if we just save the money and construct a public safety building outright without getting a loan? Would others support this approach?