Publication Date: Friday, March 04, 2005
Jim, Frank and a cup of joe
Jim, Frank and a cup of joe
(March 04, 2005) Mayor, city manager hosts coffee on budget
by Bill D'Agostino
Gathered around a small metal table outside Palo Alto Cafe, Mayor Jim Burch and a small but crowded group of residents discussed the dismal state of the city's budget when a car alarm began loudly blaring.
"Why can't the city do something about that?" Burch said jokingly on Wednesday morning.
That moment -- brought to residents by City Manager Frank Benest, who is seeking advice as he writes a draft of the city's budget -- had the effect of humanizing the city's top elected official.
The City of Palo Alto is facing a projected $5.2 million deficit for the 2005-2006 fiscal year. Layoffs are expected, along with cuts to a variety of popular programs the city offers.
Finance Committee hearings will begin in May, but until then the city manager is using a variety of formats -- like the coffee and upcoming Budget 101 forums -- to get advice from citizens.
Among the expenditure-eliminating or revenue-raising ideas floated by residents who attended the 9 a.m. coffee: capping employees' salaries (which Benest kidded would be fine as long as it wasn't his salary), spending less on "traffic calming" projects and starting a "business license tax." One person asked if the city should just cut a certain percentage across the board.
Cutting exactly the same ratio from every department would be "stupid," Benest said. "We're going to preserve services in departments we think are more essential."
Resident Rod McNall advised the City Council to stop listening so much to "pressure groups," but rather to care about the larger picture and hear the silent majority. He cited the example of neighborhood projects that try to "calm" traffic, using speed bumps, traffic barriers and other devices.
"I think the majority of Palo Altans aren't concerned about traffic calming," he said.
But the question raised an interesting question -- if the majority is silent, how can the council members listen?
Midtown Neighborhood Association President Annette Ashton, who also attended the coffee, argued that traffic is the biggest issue she hears about in her neighborhood. "The one thing we hear again and again is traffic," she said.
Budget critic Richard Alexander -- a personal injury lawyer who often spends thousands of dollars to defeat council candidates -- chimed in on that issue, arguing it was a waste of money to try to slow traffic since people will drive the way they drive regardless.
"It's like trying to restrain sex -- it doesn't work," he said.
Instead, Alexander argued, the city should allow traffic to go faster on some roads, like Oregon Expressway, by raising the speed limit and reducing the number of traffic lights.
During the civil event, attendees also got a primer on the main sources of the city's tax revenue, including sales tax and a tax on hotel occupants.
Gale Johnson, who walked to the café from his home a few miles away, was surprised to learn that the city gets more money from hotels than housing, since the city receives only a small percentage of property tax revenue.
"That's why our system doesn't make any sense. We're a service economy but we don't get any revenue from services," Benest argued, before admitting he had his own "biases" and "opinions."
The idea of a "business license tax" -- a tax on every business -- was also discussed. The city is one of the few in California that doesn't have such a fee, and therefore it doesn't have a record of all businesses in town, Burch noted.
Such a fee could also be used to raise revenue for city projects, Benest added.
The city manager pointed out that not every business in Palo Alto would necessarily be charged the same amount. "Mom and pop" stores could pay only a small fee while accounting firms could pay more, he suggested.
Such large firms have employees who use the city's roads and police protection but generate little tax revenue. "They don't pay for the services they require," Benest pointed out.
That's when Alexander handed out a one-page sheet comparing Palo Alto's per-capita spending to other California cities.
"Why doesn't the city manager have raw materials? Everyone's got raw materials!" Benest joked.
Pointing to a few Excel graphs, Alexander argued the city has too many "layers of government" -- too many managers managing too few employees. He also said the city should use "zero-based budgeting," where each department has to defend each expenditure.
The city already uses a lot of employees' time to produce the budget, and zero-based budgeting would take even more hours, Benest argued. More process equals more money.
"We're stealing services away from people," he said.
Alexander also advised putting a glossary on the wall during Finance Committee meetings. City officials use many technical terms while discussing the budget, he noted.
"We have no ideas what they're talking about," he said.
Despite his criticisms, Alexander also praised the city's emergency response crews for their speed after he dials 911, calling the emergency technicians "the prettiest thing you'll ever see."
Later, McNall asked if the city was considering moving the development center -- where people get their building plans reviewed and approved -- to another site to avoid paying the rent. (The city pays approximately $420,000 a year for the current space on Hamilton Avenue)
If the police department finds a new home, Burch noted, the city could move the development center into the existing home of the police department on Forest Avenue, saving money. The city is looking at a parking garage near California Avenue as the possible new home for the police.
The police department is crammed for space at their current headquarters, the mayor noted. But to rebuild on the same site -- especially given the city's strict building limitations -- wouldn't be enough of an improvement, Burch argued.
Toward the end of the discussion, Benest emphasized a message he has been pressing at meetings in recent months -- don't be so critical of new ideas, even if they eventually fail.
"We should not be afraid of looking at things," he said.
Mayor Jim Burch and City Manager Frank Benest will meet again with residents this morning at 9 a.m. at Printer's Ink Café, at 320 California Ave and then again on Tuesday, March 8 at Coupa Café, at 538 Ramona St., from 7 p.m. to 8 p.m.
Staff Writer Bill D'Agostino can be e-mailed at bdagostino@paweekly.com
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