Dear City Councilmembers,
I am a member of the Menlo Park Finance and Audit Commission, but my comments below are made in a personal capacity as a District 2 resident in relation to two agenda items in tonight’s City Council meeting.
Item K2 - Update on fiscal year 2025-26 year-end status
*
Many residents of District 2 and elsewhere in Menlo Park mistakenly believe the city’s budgets are balanced - they are not.
*
The staff report for item K2 clarifies that, excepting one-off items such as Super Bowl and the World Cup, the underlying deficit for fiscal year 2025-26 would have been $4 million, which is consistent with the City’s five-year financial forecast.
*
Furthermore, the staff reports states that if the number of non-basic aid schools in San Mateo County remains as is, the fiscal year 2026-27 General Fund budget is no longer balanced as adopted just 10 weeks ago.
*
If we wish to fix the City’s finances, we must first be able to describe the problem - our budgets are not balanced. Otherwise, residents will be misinformed and unable to participate in hard decisions ahead.
Item J1 - Approve advisory body annual work plans for the Finance and Audit Commission
*
I recommend the City Council approves the proposed Finance and Audit Commission workplace for 2026-2027. This includes a new work plan goal (No. 6): "Organize community budget forums to educate the public and gather input on financial matters, such as revenue generation and cost recovery strategies."
*
I believe residents are under informed about the City’s dire financial situation, and that we should seek wider input on proposed paths forward to address our structural budget deficits. If we don’t do this, we risk causing surprise and inviting pushback when any future strategies are deployed.
*
The Finance and Audit Commission could have a vital role to play in facilitating this education and input gathering, but only if enabled to do so by the City Council.
Thanks,
Vamsi Velagapudi
Menalto Ave, Menlo Park
