The city of Mountain View is pulling out of the COVID-19 pandemic in reasonably good shape, based on 2022-2023 budget numbers presented last week.
With a $414.9 million budget overall and a $163.8 million general operating fund, city officials at the city council’s June 14 meeting reported a “structurally balanced” budget with operating fund numbers in the black for 2022-2023 and five years into the future.
“We are in a good budget position,” noted City Manager Kimbra McCarthy, with a positive local economic outlook and the current city unemployment rate of 1.7%.
“This is a great position to find ourselves in,” Councilmember Pat Showalter said.
“We are in a very fortunate situation,” agreed Councilmember Margaret Abe-Koga. “It’s been because of our long history of fiscal prudence.”
However, McCarthy offered a few major caveats.
“There’s still much uncertainty,” she said, from forces outside the city that could impact the budget, including new COVID variants, the war in Ukraine, U.S. inflation and gas prices.
The inflation factor is reflected in utility price increases proposed for the upcoming fiscal year: a 12% hike for water, an 8% increase in wastewater fees and 6% more for solid waste services. The city notified residents of a public hearing Tuesday for the solid waste increases. Public hearings also will be held for the water and wastewater fees.
Another factor involves the city’s staffing challenges. McCarthy said the COVID pandemic led to remote work, but also massive turnover. The city absorbed 40 retirements and currently has 82 vacant positions.
McCarthy noted a “strain on the workforce” with increasing workloads and
employee burnout.
“This has caused people to leave the organization or leave public service entirely,” she
said.
Despite the challenges, she touted staff’s repeatedly “pivoting” to address community needs in the wake of the pandemic over the past two years. She cited allocating $6.3 million to assist low-income families and securing $21.6 million in state Homekey funding for the 90-unit LifeMoves development to help the homeless. The city also has funded three 24/7 “Safe Parking” lots for residents who live in their vehicles.
In addition, the city distributed 97 grants totaling $500,000 for small businesses, continued outdoor dining to help restaurants, offered COVID testing and vaccination sites, and established a housing help center to protect tenants from evictions.
Much of last week’s budget discussion focused on how to spend the city’s $7.8 million in American Rescue Plan Act funding for 2022-2023. Highlights included: $1.634 million for one-time employee increases; $1.5 million for Castro Street pedestrian mall improvements; $1.3 million to supplement a basic income program for vulnerable residents; a $500,000 contribution to Community Services Agency; $500,000 for job training; $500,000 for small-business assistance; and $800,000 to a Mountain View Solidarity Fund in support of undocumented workers.
The council allocated an additional $100,000 to improve broadband services.
The budget is scheduled for adoption at Tuesday’s city council meeting.
