City Desk
By Carolyn Schuk

Santa Clara's 5-Year Financial Forecast Cautiously Optimistic
Santa Clara's expenses will grow slightly faster than the city's revenues over the next five years, according to the Proposed Five Year Plan published last month by the City's Finance department. This a marked difference from the City's financial picture in 2006 to 2009 when revenue outpaced expenses by $10 million or more.

One of the main culprits, of course, is the dismal economic environment of the last 10 years - called a recession by those who haven't lost their jobs and a plain old depression by those who have. A down economy directly hits the city's main income sources: sales and property taxes, which, respectively, make up 25 and 20 percent of Santa Clara's income.

Sales tax revenue fell $17 million in 2002-03, rebounded in 2006-07, and dropped again 30 percent between 2007 and 2010. Sales tax began to grow again last year and the city

After hitting a peak in 2008-09, property tax revenue dropped about $500,000 in 2009-10 and nearly $1 million in 2010-11 as a result of lower property valuations. The county assessor expects the decline to continue, reducing Santa Clara's income in the coming year by another $600,000. Things are expected to turn around in 2012.

Because providing municipal services such as maintaining the streets and collecting the garbage is the raison d'etre of local government, Santa Clara's largest general fund expenditure (80 percent) is compensation for the employees who deliver the city's many services and those in the back office who support them.

Expenditures rose steadily through 2008-09 primarily due to steady growth in salary and benefit costs. Since then, a hiring freeze, unpaid employee furloughs, and permanently eliminating some city positions helped cut expenditures about $3 million during the past fiscal year.

But this has only slowed the future growth of compensation costs, which will continue to rise, driven largely by mushrooming pension fund contributions.

Next week: Unfunded liabilities and CalPERS' investment reverses take a mounting toll.

City Attorney Search Revs Up
The search for a new City Attorney is back in gear. Last week the City Council met in a closed session to consider candidates for the position. The buzz is that City Council is deciding between two candidates. Elizabeth Silver has been serving as interim City Attorney.

The City Attorney's Office provides legal guidance and advice to the City Council, City Manager, department heads, the city's Boards and Commissions, the Redevelopment Agency, and Stadium Authority. Budgeted compensation for the position for 2011-12 is $215,000.

Moslem Community Association Invites Community to Ramadan Open House
On Aug. 1, the world's Muslims begin celebrating Ramadan, a month-long religious observance marked by prayer, fasting, and charity.

Santa Clara's Muslim Community Association (MCA) is inviting the community to share this important celebration at its annual open house and iftar - the meal breaking the Ramadan fast - on August 13. Last year's event drew a record crowd.

The open house is an evening of good company and good food that gives non-Muslims the opportunity to get acquainted with their Muslim neighbors and better understand their religion. And perhaps even venture into the MCA's prayer hall to share evening prayers.

The evening's speaker will be Santa Clara resident Imam Suhaib Webb, a native Oklahoman who is at the forefront of efforts to foster a distinctly American Islam, one that's rooted in this country's culture and traditions.

Known for his laid-back folksy style, the 39 year-old former hip-hop DJ is a resident scholar and teacher at the Bay Area chapter of the Muslim American Society. He also runs a website he calls a "virtual mosque."

The MCA open house is Saturday, Aug. 13, 2011 at MCA Banquet Hall, 3003 Scott Blvd (at the corner of Space Park Dr.). Doors open at 6:30 p.m., with a program at 7:00. Dinner begins at sunset, around 8:00 p.m.

The event is free, but you need to make a reservation. For information and reservations, visit mcabayarea.org, email openhouse@mcabayarea.org, or call (408) 986-9874. You can watch Imam Webb's address at the 2010 MCA open house at www.mcabayarea.org/multimedia/video-section/player/48/30.