Corte Madera Balances 2011-2012 Budget

After a four-hour special hearing, Corte Madera's mayor, Alexandra Cock, wasn’t quite satisfied with a budget still holding a small operational deficit of $39,500. So David Bracken, the town manager, suggested removing $40,000 from the city’s street overlay project to put the city back in the black. With that change, the council adopted the $20,577,500 budget.

“We set out to have a balanced budget and we got it,” said Mayor Cock.  “It’s an important step and that includes having a reserve.”

“It’s a pleasure to present this budget,” said David Bracken, town manager. “For the last couple of year’s I’ve dropped that statement but, starting with this year, I say that because I see improvement in our fiscal situation.”

Town Treasurer George Warman painted the overall picture of a town that has to operate with decreasing revenues due to economic factors, including reduced sales taxes, particularly in the area of auto sales and closing businesses. Reducing expenditures has been the only remedy to balancing the budget, he explained.

Warman also said that this was the first time in his forty years as town finance manager where there was a drop in the assessed valuation of property which would affect the tax revenue.

Revenue from building permits and contractor business licenses is also down, Warman reported.

He also pointed to the change in the types of business that are located in Corte Madera as “luxury” businesses who have taken a hit in sales.  “When the economy goes down, it all goes down,” Warman said. “People are going to San Rafael and to Target and there’s nothing we can do about it.”

However, Warman said the bright spots in the budget included the fully leased Park Madera Center, a balancing of revenues and expenses and a sanitary district budget that the staff and council characterized as fully-funded and well-maintained.

Councilmember Michael Lappert took the opportunity to remind the council that Ross Valley Sanitary District, lately in the news for a proposed rate increase and a scathing report from the Marin Civil Grand Jury, had once asked Corte Madera to join their system, producing laughs from the audience.

As the various department presented their budgets, the overriding message was that staffing levels were cut to minimum levels and cost-saving measures included sharing services with other agencies, using contract labor as needed, and even reducing costs on basics like office supplies and mailings.

Twin Cities Police Chief Todd Cusimano said that at a budget cost of $301 per resident, the Twin Cities police department was near the bottom in cost when compared to other cities in the county. 

Only Novato was lower at a cost of $223 per resident. Belevedere was the highest at $684 per resident.

Cusimano said that a freeze in staffing at 37.25 positions and a shared service arrangement with San Anselmo Police in the areas of dispatch, support services, investigations, and administration resulted in a cost reduction of $606,731 from 2008 levels.

“I think that shows what you get from shared services,” Cusimano said. “It really drives the point home.”

Warman said the balancing of revenues and expenses would result in approximately $200,000 of reserves that would initially go towards the town’s $3 million debt.  But he hoped that over the next five to six years, continued annual savings would result in a reserve amounting to $1.5 million.

The largest group attending for public comment on the budget were members of the Town Band who came in support of their $6,000 annual community grant. 

However, after hearing the presentations about the lowest staffing numbers in years for the public works, maintenance, planning and building, fire and the recreation departments, Councilmember Diane Furst questioned the grant.

“I hate to be the meanie that says they can’t have $6,000,” said Furst, “but in this time, do we have the luxury?”

The other councilmembers pointed to the value of maintaining a community tradition that sets the town apart, yet still supported Furst in raising the issue.

The final general budget was approved after the $40,000 adjustment to put the budget in the black. The final sanitary district budget was unanimously approved for the 2011-12 year in the amount of  $7,465,700.

Thoughout the hearing the councilmembers referenced the recent Marin Civil Grand Jury report that criticized the town’s finances, primarily the reliance on sales tax revenue and lack of reserves.

Councilmember Bob Ravasio asked the town treasurer to add a line item to the budget for the reserve amount to “show the public we’re being responsive.”

“The grand jury’s going to have to eat crow because we’ve ended up in the black,” said Lappert.

For links to the city budgets, click here.