The Sunnyvale Sun
News
Growth in Sunnyvale stabilizes city's bills for 2008
By Stephen Baxter
Sunnyvale city coffers filled slightly higher than expected in 2006, and long-term plans likely will keep its budget level in 2007 and 2008.
Economists said the city's unemployment rate dropped to about 4.4 percent and will continue to fall in the next few years, and city officials expect more tax money when big projects are completed such as Moffett Towers and the new Town Center.
"After weathering the financial downturn that began several years ago, we are finally in a stable and sustainable state," said city manager Amy Chan in a May 15 budget summary. The city's proposed budget for fiscal 200708 is nearly $260 million. Its fiscal year ends June 30.
The city reported its 2005-06 budget had a $2.1 million surplus and the money was returned to its 20-year reserve. Much of the extra cash came from property taxes, sales taxes and hotel taxes.
The city council is expected to consider the city's budget at its June 19 meeting.
Several decades ago, Sunnyvale introduced its planning and management system to consider its long-term budget along with its annual tally. The system follows a 2-year cycle that focuses on capital improvement projects, such as street repair, one year, then looks at services, such as water rates, the next year. The fiscal 2007-08 budget looked heavily at capital improvement projects.
"I think we're in good shape for the future and for years to come, but we're doing it in a prudent way," said city spokesman John Pilger.
One challenge the city may face is funding a new library, which would cost roughly $109 million to construct and $5 million for equipment and furniture, according to the budget report.
A voter-approved bond could fund it, which would saddle the city's taxpayers with debt for several years. The 2007-08 budget designates a new library as "unfunded" until the city council approves it and decides how it will be funded.
Another challenge will be nearly $500,000 in red ink from the city's recreation services, mainly because of weak revenues from the city's two golf courses.
National trends show a declining interest in golf, and Sunnyvale golf courses now face competition from several new Bay Area courses. Sunnyvale Golf Course is due for $2.4 million in improvements in the next decade, and a golf course vision report to address problems on the links is due in late June or early July.
The proposed city budget includes $83 million in the next 20 years for infrastructure projects such as road improvements, but city finance officials say they can't find money to fix "aging and inadequate" public buildings and facilities, according to the budget summary.
Other city money problems include the rising cost of gasoline--which has spiked costs 22 percent for the city's fleet--and underfunded capital projects.
In 2004, the city council conceptually approved a 911 access fee, which would recover up to $2.5 million for the city's dispatch center. New 911 access fees in Stockton and Union City are being challenged in court, but other courts have ruled in favor of it.
When the lawsuits are settled, the city's staff said it will bring a proposal for the city council to consider.
Other problems, such as the rising cost of city employee benefits, also have been reworked and made more affordable for the city.
Pilger indicated Sunnyvale officials are optimistic about the city's future.
"We've been seeing glimmers of light at the end of the tunnel, and now I think we may be seeing the end of the tunnel," he said.
