At its June 25 meeting, the Menlo Park City Council approved its final budget for the upcoming 2024-25 fiscal year in a unanimous vote. The council also approved the staff salary schedule for the upcoming fiscal year in a 4-1 vote with Mayor Cecilia Taylor dissenting due to her desire to see that all city employees, especially teachers at city-run child care centers, are paid a living wage.
The city’s total revenues are expected to be about $73.4 million, and general fund expenditures are expected to be $74.2 million, for the upcoming year. This leaves the city with an anticipated deficit of $818,773, which has not changed since the council last saw the proposed budget at its June 11 budget public hearing.
The city will balance the anticipated $818,773 deficit with money from the general fund reserve.
If the city continues to spend at its current pace with no additional revenue, staff forecasts show the general fund balance dwindling from $34.6 million in the approved 2024-25 budget to just $4.5 million in the 2029-30 forecast.
The city’s reserve funds are also at risk, according to the staff forecast. The city’s emergency contingency reserve funds are anticipated to fall below policy levels of 15% of the operating budget in the 2026-27 fiscal year. The city’s economic stabilization reserve funds are expected to fall below policy levels of 20% of the yearly operating budget in the 2028-29 fiscal year.
A city forecast shows how the city’s emergency contingency reserves are expected to dwindle below required levels in the 2026-27 fiscal year. Courtesy Menlo Park. 
A city forecast shows how the city’s economic stabilization reserves are expected to dwindle below required levels in the 2028-29 fiscal year. Courtesy Menlo Park.
At its June 11 meeting, the council discussed the possibility of implementing new taxes to help balance the budget.
There may need to be additional budget amendments throughout the year to support the outcome of the Menlo Park Police Officers’ Association labor negotiations and memorandum of understanding updates. Negotiations with the MPPOA have commenced, and will be brought in front of the council sometime this summer, before their current memorandum of understanding term ends on Aug. 31.
The council may also be required to appropriate additional funds to support priority projects in the city’s environmental justice element.
There is, however, already some money set aside for the environmental justice program implementation. With the adoption of this final budget, the council created a new environmental justice implementation fund with a transfer of $1 million from the city’s bayfront mitigation fund.
The creation of the new fund does not change the overall operating budget for the year, impact the balance of the general fund or authorize new expenditures.
Staff wages
The City Council also passed a resolution to adopt the staff salary schedule for the upcoming year. Mayor Taylor was the only dissenting vote on the salary schedule resolution.
“I will not be supporting the salary schedule until we start paying a living wage for all of our employees, especially starting with our child care teachers,” she said. The city operates several child care centers: the Belle Haven Child Development Center, Menlo Children’s Center, Belle Haven Youth Center and Menlo Children’s Center Afterschool Program.
In the updated salary schedule, city child care teachers will make between $56,448 and $75,706 per year. Child care teacher’s aides will earn between $42,352 and $50,478.
‘I will not be supporting the salary schedule until we start paying a living wage for all of our employees, especially starting with our child care teachers.’
menlo park Mayor Cecilia taylor
Employees who are members of the Service Employees’ International Union, Local 521 will receive a 1.5% general salary increase, and employees who are members of the American Federation of State, County and Municipal Employees, Local 829 will receive a general salary increase of 2.13%.
One public commenter said that the city is already spending too much money on employees.
“I just wanted the council and the members of the public to be aware that since 2008 … the population of the city of Menlo Park has increased by about 5%. At the same time, the number of approved (full-time staff positions) for the city of Menlo Park has increased by 17%, and likewise the revenues into the general fund have increased, in real terms, by about 14%,” said Menlo Park resident James Pistorino. “In my view, the city of Menlo Park has a spending problem and not a revenue problem.”
Vice Mayor Drew Combs said that part of the reason why staffing levels have increased is because the city uses more full-time staff rather than temporary contractors to achieve its goals.
“(It’s) not just about the value to the city, but the value you see and invest in people when you decide that you want a staff that’s (full time) and receive full benefits versus having a staff that’s made up of mostly contractors and not receiving benefits,” he said.
