Larkspur Council Approves Budget

At a time when many California municipalities are facing severe deficits, the Larkspur City Council adopted a balanced budget at its Wednesday meeting.

City Manager Daniel Schwarz put forth a budget of slightly more than $13.2 million for general expenses, which was approved with minor clarifications.

“We’ve always been pretty prudent about our financing,” said Mayor Larry Chu. “We’re doing better than some cities that are having difficult times.”

Chu pointed out Larkspur’s willingness to form alliances as one way the city has kept costs from ballooning. Larkspur, he said, is involved in 30 JPAs (joint powers authority), most notably the that is shared with Corte Madera — looking to include San Anselmo in the future.

“The city has emphasized fiscally conservative and prudent decision making for many years, and I am pleased to present to the council a budget consistent with these values,” Schwarz wrote in the proposed budget. “Though I have placed some emphasis on disconcerting revenue and expenditure trends that need to be addressed, I note that we sit in a far more financially stable position than most cities. From this position of relative calm, we can deliver core services while developing a long-range fiscal strategy.”

In the budget, Schwarz also said that the city was able to contend with a rise of health care expenses without dire financial setbacks.

Despite the city’s secure financial standing, Chu said there was still a need to be proactive. “It won’t last forever. We still need to find ways to raise the revenue line.”

Chu said city officials have decided to hire an economic development specialist to try to bolster the “business side” of the city’s financial future. The mayor said parts of the city’s infrastructure have not been repaired in a long time, meaning there will be certain expenses added to future budgets and a dire need to be prepared to pay for them.

Neighboring Corte Madera was recently the subject of a grand jury report that citied questionable financial planning.

Nearly 63 percent of Larkspur’s revenue comes from property taxes, with 11.6 coming from sales taxes. Wavering property values and an unsteady economy causing store closures can easily upset a city’s budget.

Larkspur’s largest expenses are its fire services (30 percent), police (25 percent) and general administration (15 percent). Recently, pensions for retiring personnel have proven to be devastating to municipal budgets, another reason for Larkspur’s economic development consultant to keep an eye on future budgets growing in size.