Pleasanton Weekly 07.01.2011 - Section 1

Page 10

Opinion

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THE OPINION OF THE WEEKLY

oday marks the start of a new fiscal year which for the city of Pleasanton also brings a new municipal budget that for the first time in several years offers a glimmer of fiscal relief from a troubling recession. Actually, the budget approved by the City Council June 21 has a two-year life span, covering operations totaling $87.3 million for fiscal year 2011-12 that starts today, and $89.7 million for FY 2012-13. The current operating budget is expected to close on target at $86.1 million when a full accounting of receipts and expenses is completed in about six weeks. Although Finance Director Emily Wagner has said Pleasanton is “not out of the woods yet when it comes to economic concerns,” she is also seeing a slight uptick in sales and hotel/motel tax revenue along with sustained property tax receipts. It’s a different story in neighboring cities where foreclosed properties and homeownertriggered reassessments have lowered property tax valuations and tax receipts. The state’s new fiscal year budget with its gutting of redevelopment agencies is also expected to cut deeply into those cities that rely on these agencies for major development, especially Livermore. Pleasanton wisely decided against forming a redevelopment agency years ago. Because of the “glimmer of hope” Wagner and her finance department colleagues see in the new fiscal year, the balanced two-year budgets are higher than the one that closed yesterday and well above the $84.7 million budget for FY 2009-10, which was the lowest operating budget in years. Both still fall behind the record-high $91.0 million operating budget Pleasanton claimed in FY 2007-08. Still, this year’s new budget and the one for FY 2011213 will be closely monitored by Wagner and the City Council on a quarterly basis starting in October with a detailed analysis in the city’s customary mid-year budget review in January. If the guarded economic improvement turns south again, adjustments can be made to meet the new conditions without impairing services or key operations. The new FY 2011-12 budget maintains the city’s reserves of $25.3 million. Employee salaries continue to be frozen, with a hiring freeze also continuing through the two-year period. In the last two years, the city has eliminated 40 positions through attrition, which has resulted in $6 million in savings. Non-essential spending through reductions in travel and training and delays in non-essential capital projects have also cut costs. Consolidations and reorganizations within the municipal government have trimmed costs, too. Separate departments for planning, building and engineering were combined into the Community Development Department under a single director, Brian Dolan. The parks division was transferred from Community Services to the Operations Service Center, along with utility billing services. Business licenses were moved out of Finance to the Economic Development Department. Even the issuance of dog licenses will soon be moved out of City Hall to be handled by the Valley Humane Society or the county animal shelter in Dublin. Bike licenses, once handled by city staff, must now be obtained online at a national registry. Perhaps the biggest unknown rests in Sacramento where Gov. Jerry Brown and his Democratic-controlled Legislature have crafted a state budget that could affect municipal revenue sources, including Pleasanton’s. Although a voter-approved measure blocks the state from directly grabbing money from city coffers as it has done repeatedly in the past, there’s talk of legislators “adjusting” the formulas for collecting and distributing property and sales taxes. Some have suggested that the distribution of these taxes be based on population instead of where the taxes are collected, formulas that might not bode well for Pleasanton. For now, at least, Pleasanton’s new fiscal year looks promising with increased revenue that can be applied to its major challenge of reducing its overall employee pension liability. That’s on the council’s agenda in the coming months. N

Pleasanton Weekly PUBLISHER Gina Channell-Allen, Ext. 119 EDITORIAL Editor Jeb Bing, Ext. 118 Managing Editor Dolores Fox Ciardelli, Ext. 111 Online/Community Editor Jessica Lipsky, Ext. 229 Reporter Glenn Wohltmann, Ext. 121 Editorial Assistant Amory Gutierrez, Ext. 221 Contributors Jay Flachsbarth Deborah Grossman Jerri Pantages Long Kerry Nally Joe Ramirez ART & PRODUCTION Lead Designer Katrina Cannon, Ext. 130 Designers Lili Cao, Ext. 120 Kristin Herman, Ext. 114 ADVERTISING Account Executives Carol Cano, Ext. 226 Lorraine Guimaraes, Ext. 234 Karen Klein, Ext. 122 Real Estate Sales Andrea Heggelund, Ext. 110 Ad Services Cammie Clark, Ext. 116 BUSINESS Business Associate Lisa Oefelein, Ext. 126 Circulation Director Bob Lampkin, Ext. 141 Front Office Coordinator Kathy Martin, Ext. 124 HOW TO REACH THE WEEKLY Phone: (925) 600-0840 Fax: (925) 600-9559 Editorial e-mail: editor@PleasantonWeekly.com calendar@PleasantonWeekly.com Display Sales e-mail: sales@PleasantonWeekly.com Classifieds Sales e-mail: ads@PleasantonWeekly.com Circulation e-mail: circulation@ PleasantonWeekly.com

The Pleasanton Weekly is published every Friday by Embarcadero Media, 5506 Sunol Blvd., Suite 100, Pleasanton, CA 94566; (925) 600-0840. Mailed at Periodicals Postage Rate, USPS 020407. The Pleasanton Weekly is mailed upon request to homes and apartments in Pleasanton. Community support of the Pleasanton Weekly is welcomed and encouraged through memberships at levels of $5, $8 or $10 per month through automatic credit card charges. Print subscriptions for businesses or residents of other communities are $60 per year or $100 for two years. Go to www.PleasantonWeekly.com to sign up and for more information. POSTMASTER: Send address changes to Pleasanton Weekly, 5506 Sunol Blvd., Suite 100, Pleasanton, CA 94566. © 2011 by Embarcadero Media. All rights reserved. Reproduction without permission is strictly prohibited.


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