Redwood City Windfall To Fund Programs For Those In Need

REDWOOD CITY, CA — Redwood City's pandemic related revenue shortfalls turned out to not be as bad as expected, and the city plans to use the windfall to help those in need, city officials said last week.

The city’s cost-saving measures adopted last year, combined with a 9.7 drop in revenues amid the pandemic which wasn’t as bad as had been initially forecast will allow the city to support vulnerable residents and address long-term needs, city officials said in a statement Friday.

“The City Council’s conservative financial practices allow the City to support the community during this unprecedented economic downturn and make progress on long-term goals,” City Manager Melissa Stevenson Diaz said in a statement.

“Additionally, voter support for Measure RR in 2018 has provided essential ongoing revenue to sustain community services.”

Actual year-end calculations resulted in a year-end operating balance of $12.1 million as of June 30, 2020, $1.1 million more than was expected.

Stevenson Diaz is recommending the operating balance be used to fund pandemic response and recovery costs including a one-time utility bill forgiveness program, small business support; enhanced communications; diversity, equity and inclusion initiatives; and increased funding for homelessness services.

The recommendation also includes partial funding for planning studies related to improving Redwood Shores levees and the potential creation of a Bayfront Park in the Inner Harbor Area.

“The City has prioritized support for vulnerable residents and our business community during the pandemic,” Stevenson Diaz said.

“We are responding with urgency, creativity and compassion. At the same time, we are proactively addressing long-term needs, including paying off pension liabilities at an accelerated rate to save taxpayers approximately $38 million.”