Last Summer, the 2007-08 Budget reflected a reduction in City services to help address an imbalance between revenues and expenses in the General Fund.  That budget also included a projection that this problem would continue for several years to come, necessitating more service reductions. 

The City Manager's proposals include termination of the Special Needs and Healthy Cities School Tutoring programs, closing the Kiwanis Building at Burton Park, reduction of staff at the Youth Center and Adult Community Center, terminating the Police Athletic League (PAL), discontinuing several Adult Sports Programs, ending City maintenance of Heather School Field, starting a fee based Tennis Court Lighting and reduced levels of Residential Design Review.

City Expenses are growing faster than City Revenues and the gap is widening. This will require that the City Council to make additional General Fund Budget service reductions and/or find new sources of revenue in the neighborhood of $800,000 to $1 Million per year in each of the next 3 years. This is true even after the projected revenues from the new San Carlos Marketplace and the future Palo Alto Medical Center are included.

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