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2012-2013 HMB Budget

2012-2013 City of Half Moon Bay Annual Operating and Capital Improvements Budget Shows Substantial Cost-Savings and Investments toward Long-Term Fiscal Strength

City Manager Laura Snideman will present a budget that focuses on infrastructure improvements, fiscal sustainability and public safety at the June 5 City Council meeting.

HALF MOON BAY, CA – Within the proposed 2012-2013 budget for the City of Half Moon Bay, there is compelling evidence that recent City Council decisions and changes to the City’s operational approach ─ combined with approximately 4% increase in revenues ─ have created significant annual savings and an improved long-term fiscal outlook. As a result, the City will maintain its existing services for the first time in years.

“After enduring the most challenging economic times the City has ever faced, we now have legitimate reasons to be proud of our progress toward fiscal strength,” stated City Manager Laura Snideman. “Without question, the reason we have a relatively healthy and stable budget today can be directly attributed to the proactive steps taken by our City Council. Many difficult decisions were made in recent years, but we can now look back and verify that these were the right choices.”

Annual savings from the City’s new operational approach for law enforcement and recreation services total almost $1 million. A simple breakdown of some of these cost effective initiatives includes:

  • Contracting law enforcement with the San Mateo County Sheriff’s Department: $800,000 in annual savings
  • Contracting recreation services with City of San Carlos: $190,000 in annual savings
  • Staff concessions and furloughs: $150,000 in savings
  • Miscellaneous budget saving measures: $200,000 in savings

Remarkably, the City’s budget situation is improving despite continued impacts from state budget takeaways and mandates. These impacts include a loss in funding from state vehicle license fees, a delay in state reimbursements and the yet-to-be repaid loan of withheld 2009-2010 property tax funds, totaling almost $700,000.

The 2012-2013 fiscal year budget is balanced and a portion of the General Fund will subsidize important capital projects including street maintenance. However, it is this need to fund capital projects that creates an overall deficit.

“We’ve made great strides, yet many challenges still exist with regard to funding the City’s capital improvement plan,” added Snideman. “In the next year, we must invest in critical capital projects, which will unfortunately create a net deficit for 2012-2013.”

City resources will be applied to maintain streets, leverage grant funds to invest in new trails, and pay down some debt to realize savings in future years. Therefore, the General Fund budget includes revenues of $11,101,756 and expenditures (including capital project and reserve funding) of $12,241,179. This creates a budget deficit of $1,139,423, although the Unassigned Fund balance remains healthy at a projected $1,110,256.

Proposed infrastructure projects for FY 2012-2013 include: Street resurfacing to maintain the City’s current level, design of the Main Street Bridge, extending Highway 1 trails, improvements to Smith Field, repair of sewer mains and enhancement to Highway 1 safety. Other identified goals within the 2012-2013 budget are to encourage long term fiscal sustainability by paying down liability early to save future monies, funding pension stabilization reserves to better withstand unanticipated fluctuations, and updating the City’s public safety emergency plan to safeguard the community in the event of a catastrophe.



Contact: Ross Guehring (415) 250-2785