We must secure our Finances — we have no money to waste. Our City finances touch nearly everything we want to achieve. Yet the City is now entering into a period of long-term fiscal squeeze, brought on by the tandem combination of the Bay Area’s escalating cost structure (especially construction and land costs), and the ominous upscaling of our long-term pension and retiree health liabilities. Ensuring our fiscal security while simultaneously investing for our future is do-able, but it will require great skill and balance. We must:
- Fund our Infrastructure and Community investments - including major new challenges such as Rail Grade Separation.
- Make sure operating expenses do not outgrow our revenues. Calculate operating expenses using realistic investment-return rates.
- Get control of our pension/OPEB debt - stop adding new unfunded liabilities, and begin to pay down the existing ones.
- Pass the Transparency in Labor Negotiations policy - the public should be able to see the wage and pension costs of labor contracts before final agreements come to Council for yes-or-no adoption.