By Mike Rosenberg
The San Mateo County Times
BELMONT, Calif. — Belmont officials have cut spending by $1 million to help plug a budget gap and, along with San Carlos, will empty their fire department reserves to give firefighters raises as the joint agency heads into its final full year.
The Belmont City Council on Tuesday approved a plan to fill the city’s $1.3 million budget hole. The gap represents about 7.5 percent of the city’s budget, which does not include the fire department. The city will cut spending by $1 million and increase fees to raise another $300,000 for the next fiscal year, which begins in July.
Those cuts include a savings of $245,000 by not filling two vacant police officer and dispatch positions as well as several other cuts to various departments that will save less than $100,000 each.
Finance officials chalked up much of the deficit to expected drops of about $664,000 in sales tax income and $292,000 in hotel tax proceeds. They also subtracted $245,000 in case they lose even more money than they anticipate.
Meanwhile, the Belmont-San Carlos Fire Department Board which consists of two council members from each city on Wednesday also unanimously approved a budget for the next fiscal year, which also begins in July.
Faced with roughly a $1 million deficit, the fire commissioners agreed to use nearly the entire department’s remaining reserve or “rainy day” fund. Although draining reserves would typically be a reckless long-term move, the two cities plan to end the joint fire department by October 2011.
After next fiscal year, then, the departments would have at most four months of operations left to fund.
The fire department budget will be $15.8 million, up 15 percent from this year’s total spending of $13.7 million. Most of the cost increases are a result of 5 percent to 6 percent raises for firefighters, captains and inspectors, higher medical costs and the purchase of a $1.2 million fire truck. There is also an expected payout of $386,000 for Fire Chief Doug Fry, who plans to retire in the next 12 months.
The department’s budget has soared 30 percent in the past five years.
However, fire officials did cut a series of small items for a savings of $227,000.
San Carlos will contribute $6.3 million and Belmont will fund $5.5 million, roughly the same as last year. The cities also will receive grants, particularly for the fire truck, and some fees.
The full city councils of each city still need to approve the budget, and may do so later this month.
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