Minority Report of the Piedmont Municipal Tax Review Committee

(Adopted by Steve Weiner, Tamra Hege, Eric Lindquist)

Introduction

Maintaining strong municipal services (police, paramedic and fire, streets, parks and sewers) is a crucial element in Piedmont’s quality of life. Correspondingly, maintaining the City’s ability to pay for high priority services, especially in a time of economic trouble and massive budget cuts at the state level and in other Bay Area cities, is vital.

The advisability of continuing the city’s (property) parcel tax beyond its current expiration date of July 1, 2013 is the issue under study by the Municipal Tax Review Committee (MTRC). Whether voters should approve continuation of the parcel tax necessarily requires an examination of the City’s overall financial condition and management.

The MTRC prepared projections of the City’s likely financial condition over the next nine years (including the period of 2013-2017 when a renewed parcel tax would be in effect.) These projections were prepared after considerable time spent discussing and agreeing upon reasonable assumptions and after much deliberation by the MTRC in concert with city management. We believe the MTRC is unanimous in approving these projections as our best effort to project the financial path of the City of Piedmont.  The conclusion to be drawn from these projections is that the city is on a path that is clearly not sustainable. > Click to read more…

Urging Fiscal Reform Prior to Parcel Tax Vote

At its August 3^rd  meeting, the Municipal Tax Review Committee (MTRC) voted unanimously to recommend that the City Council postpone a city-wide vote to approve the City’s parcel tax until the June 2012 election.  Currently, the parcel tax is scheduled for a vote in the February 2012 election.  The MTRC, in exchange for its support of the parcel tax, is offering to give the Council more time to act on its stern recommendations to control City expenditures and begin implementing them prior to the June vote.

A draft report, adopted unanimously by the Committee, spells out in stark terms the financial pitfalls facing the City and the urgent need to rein in expenses.  > Click to read more…

In response to a public records request made on June 25^th, the City provided the final master plans and traffic calming measures for the proposed Blair Park sports complex, which were submitted to the City by project architect Clarence Mamuyac three months ago, on April 1. Additional information was submitted by Mamuyac on April 7 and May 10.  To date, the City has not officially released any of the final plans to the general public; nor has the City Council set a date for a “final” public hearing on the proposed development.

Cost estimates for the construction, operation and maintenance of the project, which the Council requested in March, have not yet been provided by Piedmont Recreational Facilities Organization  (PRFO), the project proponent.

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At its Wednesday, July 7 meeting, the City’s Municipal Tax Review Committee (MTRC) tackledthe dire financial scenarios that lie ahead for Piedmont unless the City Council makes some major changes.

The Committee projects that – even with renewal of the parcel tax – current trends will result in Piedmont suffering ongoing and worsening deficits in future years:  a $1.6 million deficit in 2015-16 rising to a $3.2 million deficit in 2019-20. > Click to read more…

Will voters paint with too broad a brush?

The worst kept secret in Piedmont is that City Council decisions involving utility undergrounding, staff benefits, and recreational facilities have created a fiscal crisis.  As bad, if not worse, the Council has no strategy for fixing the problem.   Indeed, it remains unclear how we will avoid what a member of the Council appointed Municipal Review Tax Committee (MRTC) called a “homeowner’s revolt” when the city increases the sewer tax by 50% and asks Piedmonters, already among the most heavily taxed homeowners in the state, to extend the parcel tax.  The MRTC further noted that without major change in Council behavior, the city would soon incur large deficits even if the parcel tax were extended. > Click to read more…

A Report from the Chair of the 2011 Municipal Tax Review Committee,  Michael Rancer

At its June 22 meeting, the Municipal Tax Review Committee began reviewing draft proposals for recommendations to the City Council.  After lengthy discussion, the committee began to coalesce around intention to recommend:

• Reauthorization of the municipal parcel tax beginning July 1, 2013

• First year levy to equal the 2012-13 tax

• Future annual increases limited to Bay Area Consumer Price Index (CPI), but not more than 4% per year > Click to read more…

Piedmont’s proposed FY 2011-12 budget includes an increase of $275,000 for street resurfacing, compared to $175,000 last year. Piedmont has always been proud of its well maintained roadways, but heavy winter rains have caused cracks to enlarge and pot holes to develop. Sidewalks and gutters also require ongoing attention.

If residents notice problems such as cracks, unsafe conditions, holes in the public right-of-way, they may contact the Public Works Department at cnakahara@ci.piedmont.ca.us or (510) 420-3050. When City Hall is closed, call the Police non-emergency number:  (510) 420-3000.

Roadway damage on Moraga Avenue > Click to read more…

Questions on the Budget submitted to the City Council by a resident:

1.  5 Year Cost Projections: Many cities do a five year cost projection.  Has Piedmont done such a projection?  If so, will costs exceed revenues in the next five years?

2.  General Fund Reserve: The City’s general fund reserve is quite low, compared to generally recognized reserve requirements for cities of its size.  How will the City build reserves back to a level that will ensure the City can handle a fiscal emergency?

3.  Employee Contributions to Pension Benefits: The costs for 3 percent at 60 for miscellaneous employees and 3 percent at 50 for public safety employees will likely rise sharply in the future.  Are the projected increases in these costs incorporated into the budget?  Are there plans for negotiating with employees to have them pay for the employee share of their California Public Employees Retirement System (PERS) costs?  How much would the City save if all employees paid their share of PERS? > Click to read more…

A PCA Editorial urging the Council to videotape budget and CIP meetings and consider funding priorities with all residents in mind

Every year the Piedmont City Council goes through a budget approval process to determine how Piedmont taxes will be spent. Instead of being held in City Council chambers in City Hall, the pivotal initial budget “workshop” meeting will be held on Saturday, May 21, at 9:00 am in the Piedmont Police Department Emergency Operations Center  (EOC) on Highland Avenue.  Meetings held outside of the City Council chambers are rarely videotaped or broadcast.  The only way that Piedmont residents can see and hear the  workshop discussion is to attend the meeting.  (Two prior CIP Committee meetings held in the EOC were not videotaped, as well.)

At the workshop, Department heads and the City Administrator will present their budget requests and respond to questions from the Council.   Capital Improvement Projects (CIP) recommendations will also be discussed.   Further information, direction or explanation of specific expenditures may be requested by the Council from staff.  The public may address the Council or raise questions on a limited basis during the workshop.

Due to previous major events impacting the City’s finances, this year’s budget is important.  Various items having an impact on the budget include: > Click to read more…

The  Piedmont Capital Improvement Program (CIP) Review Committee will be touring the “education wing” of the former Christian Science Church building at 801 Magnolia on Monday, May 16, 2011.   The tour will begin at 6:30 p.m. in front of City Hall.  It is open to the public.

Staff has proposed the education wing of 801 Magnolia Avenue become a childcare facility.  This may include moving programs out of the Recreation Department location at 358 Hillside Avenue, allowing staff to expand its offices.  Other uses for the space raised by Piedmont residents and mentioned in the General Plan Survey have not been proposed by staff.

The CIP Committee is charged with, “Develop(ing) procedures for encouraging and seeking citizen input into the capital budget process.”  However, due to limited funding no public input was solicited this year.  A list of pending projects and highlights from staff’s “wish list” of proposals from the CIP staff report are provided below.

Following the tour, the CIP committee will review the draft CIP priority list and its  CIP recommendations.  These recommendations will be considered by the City Council at 9:00 am on Saturday, May 21, 2011 in the Emergency Operation Center (EOC) of the Police Department.   It will not be videotaped.

The CIP fund represents the largest amount of discretionary spending by the Piedmont City Council.  Due to CIP funding being utilized to satisfy Piedmont Hills undergrounding cost overruns, the CIP budget has been reduced.  It is now $573,000.  New funding is not anticipated for 2011-12.

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