Dear Editor, As I read about the Indoor Recreation Center
groundbreaking ceremony, a lot of thought and concern is running
through my mind. This is the third RDA project which is being
built. It has a senior center, indoor pool, gym and fitness center.
It should be a beautiful project. It has a projection from city
staff of $175,000 deficit in operating costs for the first year and
break-even at year three.
Dear Editor,
As I read about the Indoor Recreation Center groundbreaking ceremony, a lot of thought and concern is running through my mind. This is the third RDA project which is being built. It has a senior center, indoor pool, gym and fitness center. It should be a beautiful project. It has a projection from city staff of $175,000 deficit in operating costs for the first year and break-even at year three.
It is the projection which concerns me. When we started building the Community Center five years ago, city staff presented to the Council a break-even center. Right now, the Community Center runs at a $600,000 deficit. When we were discussing the swimming center operating expense, city staff promised to close down the facility in the winter months to maintain a zero balance. It is running a $275,000 deficit this year.
One really would wonder whether the Council was being fed some unrealistic projections by the staff, or if the staff just forgot how to make it work. With the near future deficit projection for the indoor center, these three projects will create a $1 million deficit in the general fund.
The true meaning of RDA is supposed to create economic growth for the community. Yes, we do have a good looking facility, but instead of new revenue coming in, we spent $147 million in RDA funds to create a $1 million deficit in the general fund. We not only will abuse the true meaning of a redevelopment district, but also create a good-looking empty facility with no money to operate it.
I am deeply concerned about the city’s finances. We are deficit spending two years in a row now. Since the last City Manager left 5 years ago, the general fund spending went from $10 million to $20 million, which is probably the highest growth rate in spending in all California. The governor has not touched city’s funding for two years. City Council members, while you look into this coming year’s projects, please make sure the direction is right. Look a little deeper, pay more attention to what is being presented to you. Keep a closer eye on your staff. We cannot afford any more blunders.
M.U. Smith, Morgan Hill
