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Palo Alto Online

City low in fat, report says

by Bill D'Agostino

In a report that sometimes read like a bitter letter to the editor, the city of Palo Alto responded to criticism that it has a "bloated" budget by pointing the myriad of other services it provides in comparison to other cities.

The newly released report blatantly attempts to point out flaws and "shortfalls" in the logic of critics, like attorney Richard Alexander, who continually accuse the city's of overspending.

"Over the past several years, residents and local newspapers have raised questions about the growth in City staffing and City costs," the report noted. "Often, these observations reflect a lack of fundamental knowledge of the operation and financing of local government and of the varied services provided to each community."

Among the unique Palo Alto amenities attributed to the city's high level of spending, in comparison to such cities as Mountain View and Santa Clara:

* various art, children and theatres programs;

* 4,000 acres of open space;

* six library branches;

* more police officers and fire stations per resident;

* more extensive emergency medical response than other communities;

* distinctive environmental management programs, including the running of its own landfill;

* services sold to other cities that help pay for some programs Palo Alto residents enjoy.

The report notes that the city's visual arts programs, children's theatre, and Junior Museum and Zoo cost $3.5 million. That represents 3 percent of the city's $125 million in expenses, not including utilities. Managing the 4,000 acres of open space costs $1.6 million. Library services cost slightly more than $5 million, as do environmental management programs.

Alexander -- the main source of the constant criticism that prompted the analysis -- pointed out that the staff writing the report benefit from the city's "fantastic incomes" and "expensive retirements." The excessive spending is due to those salaries and benefits, not services, he claimed.

"No one has asserted tough-love fiscal control on Palo Alto's government," he said on Wednesday, reiterating assertions he has made for the past two-plus years. "The end result is that we have government of the staff, by the staff, and for the staff."

Alexander has spent much of his own money printing advertisements in newspapers to declare his claims, much to the distress of city staff and some council members.

In the end, the report noted that a full analysis of the assertions made by Alexander and others requires more work. But the report hoped to caution others about listening to claims of budget bloat without considering all the possible reasons for the spending.

"The casual observer cannot accept the high level of services provided in this community and simultaneously discount the resources required to support those services," the report concluded. "Moreover, one cannot undertake a major reallocation of resources without altering the fabric of services the community has come to expect."

The city's report can be viewed at www.cityofpaloalto.org/cityagenda/publish/cmrs/1838.pdf.

Bill D'Agostino can be e-mailed at bdagostino@paweekly.com