Menlo Park staff has been citing a projected $2.9 million revenue shortfall as the reason behind impending cuts in city services and/or tax and fee increases, but the union representing most city employees is charging that the shortfall is “manufactured.”
“Thirteen months ago, there was no deficit,” said Sascha Eisner, the worksite organizer for the Service Employees International Union Local 715. “Six months later, the city is citing this $2.9 million figure that staff created. This figure is being used to justify staff cuts, service cuts and contracting out services.”
Mr. Eisner questions $2 million of the projected shortfall now identified as the anticipated costs for “infrastructure maintenance” projects, including maintaining the city’s streets, sidewalks, parks and storm drain system, according to Finance Director Carol Augustine.
But the infrastructure costs — projected to be $2 million annually through 2013 — must be approved by the City Council on an annual basis, and they weren’t included in a financial report presented to the City Council in February of last year. Staff presented the report when the city opted to pursue a “community-based” budget balancing approach.
The city has yet to pin the $2 million to specific projects. And when residents participating in the community budget workshops earlier this year were asked to identify potential cost-cutting options, they were not asked to review specific infrastructure projects.
The union says the city has effectively “manufactured a deficit” by adding the costs to the city’s budget projections late in the game.
Mr. Eisner said union representatives will state their claim to the council at its March 28 priority-setting session.
Ms. Augustine said $2 million is allocated for infrastructure costs every year, and the money is pulled from the general fund and put into a separate fund. The projects are included in the city’s long-term financial forecast, she said.
She noted that although the city postponed infrastructure spending for this fiscal year, ending June 30, it is in the city’s best interest to carry out the projects.
“If parts of the city aren’t maintained, things could get worse quicker,” she said. “The longer we wait to make repairs to our sidewalks, streets and other areas, the more expensive repairs get when we make them.”
