Belvedere weighs $14.5 million budget amid deficit, rising costs

The Belvedere City Council reviewed a $14.48 million preliminary budget May 11, directing staff to develop a dedicated accounting structure for the Mallard Pointe redevelopment project and learning that the city faces an estimated $10 million to $15 million in infrastructure costs not yet in any spending plan.

On $12.41 million in total revenues, the $2.07 million overall deficit — previously made public at the April 16 Finance Committee meeting — is driven primarily by the $4.97 million Beach Road stabilization project.

Councilmember Jane Cooper asked whether the public should be alarmed, but Administrative Services Director Helga Cotter said there was no reason for concern.

“The majority of that is covered by the transfers from the critical-infrastructure reserve fund,” which was built up over several years in anticipation of the project, she said. “Following this one-time expense, the budget is expected to return to more typical operating levels.”

Aside from capital spending, the budget projects operating revenues of $11.86 million and operating expenditures of $11.16 million, for an operating surplus of $700,577.

The Beach Road project involves fortifying the aging embankments beneath the road, as engineers warn it could collapse in a major earthquake, flooding hundreds of lagoon-area homes. The City Council approved a $3.51 million construction contract for the work in April, with $2.48 million in costs rolling over from the current fiscal year. Construction is expected to begin in June and end in October.

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