Tight budget approved, without park fees Tight budget approved, without park fees (June 22, 2005)

Fees for park users rejected, but city faces $5.2 million in service cuts and fee increases during the next year
After Palo Alto City Manager Frank Benest warned of a bleak financial future, the City Council Monday night passed a budget that eliminates 30 staff positions and reduces service levels across all departments.

The $120.7 million budget represents a "structural" correction for a city that was headed for a $5.2 million deficit this coming fiscal year and ongoing shortfalls for the next nine years, according to city projections.

Instead, the city will barely break even -- but could be set up to be in the black for the next decade, given no new unpleasant economic surprises.

Despite the severe cuts and some fee increases, the council granted last-minute reprieves in three areas that had faced funding impacts:

* A controversial proposal to start charging a $5 day-use visitors fee to Foothills Park and Arastradero Preserve was rejected, following heavy criticism from members of the public. The proposed fees could have brought $60,000 in revenue to the city.

* Two programs for the homeless and working poor, run by InnVision's Urban Ministry, received $31,000 from the council. The money will ensure that two hot meals per week, or 9,320 meals a year, will not have to be cut from Urban Ministries' services. The Family Harvest program, meanwhile, regularly provides groceries for 50 families.

* Another social service -- the Family Resource information-and-referral program -- will receive $52,000 to pay the salary of a recreation coordinator, a $10,000 increase over the Finance Committee's recommendation. Remaining budget impacts include:

*Residents will pay an average of $31.50 more per month for utilities.

*The Neighborhood Traffic Calming Program has been scaled back to focus solely on the school commute corridor.

*$100,000 will be provided to the Charleston/Arastradero Corridor Plan.

*One of two community-service police officers will be eliminated, reducing the city's ability to respond to noise and other citizen complaints.

*The city's parks, fields, tennis courts and golf course will receive less maintenance.

*Higher fees will be charged on tickets for Children's Theatre productions.

*Staff will prepare a report by the end of the year on how the city can slow the increase of employee benefits, a significant challenge due to rapidly escalating retirement and health-insurance costs.

Some cuts that had been proposed last month were reinstated by the Finance Committee before even reaching the council. These include the Wingspread theater program, a half-time park ranger and a parks/open space assistant.

With Silicon Valley facing continuing economic stagnation, council members tussled throughout the evening with the temptation of providing services without finding ways to fund them.

"I want to caution us to be careful," Councilmember Dena Mossar said. "Unless we come up with new revenue sources, we will decrease services. One of these years the council will have to go, 'Hm, sorry. We're not doing that this year.'"

Overall, however, council members commended the city staff for its work. Councilmember Vic Ojakian, chair of the Finance Committee, pointed out that the budget does not dip into the General Fund reserves; provides for CityWorks, the city's infrastructure-maintenance program; and retains fund reserves for retiree health benefits.

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