Q&A
The City of Davis is facing major challenges with respect to finances. Specifically, 1) its sources, 2) its handling, and 3) its conservation -- both short term and long term.
- What do you think are the most important fiscal challenges facing Davis?
- What are the most obvious solutions?
- What do you see as the obstacles to addressing these challenges with the solutions you propose?
[Don's response:] The primary role of the City Council is to assure that our basic city services are operating effectively. We have a strong appetite for high quality city services and must pay for those services. Over the past four years we have devoted significant energy to making sure our city works and I am heartened by the strong satisfaction levels shown in our recent survey of Davis residents.
Our city's continued fiscal stability hinges on increased economic vitality consistent with our community identity as the home of a world class research university and a great place to live. As a community, we have made conscious decisions to forego many of the common approaches cities in California have taken to generate revenues. The ongoing challenge we have is to generate sufficient economic activity to sustain our service levels.
I believe our path to fiscal stability and economic vitality is to 1) enhance the arts and entertainment destination of downtown and the Mondavi neighborhood; 2) leverage the research related spinoff business activity from clean energy, life sciences and technology work at UCD to bring jobs to Davis that match our population; 3) complete the already approved retail and commercial projects at Second Street, Alhambra and in the Interland area; 4) energize two neighborhood centers, perhaps with the implementation of "green business zones"; 5) continue to improve our city's finance and budget operations; and 6) continue our investment in retail activity and public infrastructure in the vibrant downtown. In addition, we will need to reconsider two revenue measures in the next few years when the Park Assessment and the ½% sales tax increase expire.
Proceeding on this path will involve partnerships between the City and private parties and balancing land use planning decisions to assure that all local impacts are mitigated. We will need to continue and improve upon the high confidence level that most residents have in city services and financial operations. The Finance and Budget Commission is actively engaged in detailed review of all city departments and development of public awareness efforts.
Over the past four years, we have made significant progress in the areas of fiscal stability, economic development and organizational strength. We have:
- Eliminated an annual operating deficit of about $2 million over the four-year period.
- Secured long-term bargaining agreements with all labor groups. This is fair to employees and allows the City to more accurately predict expenditures.
- Kept number of city staff constant.
- Implemented cost recovery program to systematically assess fees and rates consistent with cost of services.
- Improved budgeting practices, reduced operating budgets in all city departments, and implemented a five-year forecasting and financial planning model.
- Revised development impact fee structure.
- Changed water fees to volume based rates.
- Passed Park Assessment renewal and a 1/2% sales tax increase that requires reauthorization in 2010.
- Purchased the Varsity Theater building and leased it for use as an independent film venue.
- Approved a proposal to relocate and restore the historic tankhouse near the Hunt Boyer mansion.
- Opened the Bistro 33 restaurant in the historic city hall.
- Upgraded the 3rd Street corridor.
- Conducted a comprehensive study of campus/community connections and launched a proposal to implement a shuttle system between downtown and the Mondavi Center area.
- Approved zoning necessary to permit a Trader Joe's store to locate at the University Mall after showing all potential sites to Trader Joe's and supported private negotiations among three business entities to amicably resolve lease and location decisions.
- Approved Alhambra Neighborhood Shopping Center at the corner of Alhambra and Mace.
- Allowed voters to approve Second Street Crossing, a community serving retail center near Mace and Second Street, including a Target Store and four other mid-sized retailers.
- Secured Dollar Store for Davis Manor Shopping Center.
- Joined the Golden Capital Network as a founding member.
- Attracted DTL, an industrial software development and design company, to locate their expanded business operations in Davis.
- Established an annual Business of the Year Award and presented the first award to Pam Marrone, a successful local entrepreneur.
- Established strategic leadership framework within city government through biennial goal setting and six month monitoring process. As member of the Council subcommittee on retreat planning I have been a leader in organizing the Council goal setting processes.
- Established routine annual performance evaluations for City Manager aligned with City Council goals.
Over the next four years, we will face the ongoing challenge of financial constraints and key decisions on assuring reliable, effective community services. Davis can and should become economically self-sufficient. I support new local business projects which increase revenue while keeping the unique character of our city.
I will continue to be a voice of fiscal responsibility on the Council, insisting on another tenet of sustainability: living within our means. The people of Davis have shown trust in the city government, by increasing the sales tax and renewing the schools, library and park taxes. The City, then, must act responsibly to safeguard each resident's contributions to public funds and carefully consider each allocation from the City's coffers.
