Mayor: City Holding Steady During Sobering Financial Times

Mayor Jennifer Hosterman's State of the City on Tuesday focused on the city's financial stability, upcoming development projects and efforts to remain fiscally responsible in the coming years. 

She spoke before a full room at the Hilton Pleasanton at the Club. The event was hosted by the Pleasanton Chamber of Commerce and was attended by many in the business community. 

Hosterman began on a somber tone, pointing out that the nation still is emerging from one of the worst economic recessions in 80 years. Local sales-tax revenues remain flat, while property taxes increased 2 percent over fiscal year 2007-2008. 

In light of the uncertainty however, Hosterman said Pleasanton is "holding steady."

"2010 was about doing the same with less in Pleasanton, maximizing our existing resources, while keeping an eye to the future," she said. 

When citizens ask her about the city's fiscal state, Hosterman said she responds that Pleasanton was prudent during better days.

"Pleasanton has always been a bit 'different' in terms of financial planning. Even when the development dollars were rolling in, we were putting a lot of them in the bank," she said.

As proof of economic vitality, Hosterman highlighted the city's financial assets—$881.1 million net assets, with $171 million in unrestricted net assets and the general fund, and an unreserved balance of $25.3 million. 

"Unlike many other cities in the Bay Area and California, the sky is not falling in Pleasanton," she said. "We are double A-plus rated financially."

She spoke of a number of businesses, including software company , and other big-name companies that have announced plans to move or have already moved headquarters to Pleasanton.

There are a number of development projects in the works or that have been completed.

Hosterman highlighted the city's approval of the Staples Ranch project, which will include a 45-acre retirement care facility, 37-acre auto mall, and 11-acre retail and commercial center on the eastern side of Pleasanton, a new Safeway store that's about to break ground and the grand opening of a second BART station.

And she touted the completion and opening of the .

"What a wonderful visual for all of our residents and businesses that we are very, very economically much more active and this is really what gives us the opportunity to showcase a turn and a change for the better in our local economy," she said.

Transportation was another key topic in the mayor's speech, with the opening of the eastbound Interstate 580 High Occupancy Vehicle lane last year and the work the Tri-Valley cities are doing to further improvement projects on State Route 84. 

Looking ahead, Hosterman said the city is prepared to tackle challenges the city faces, including its unfunded pension issues.

"We will continue to tighten our belt a little more, continue to freeze new hires, engage in labor concessions and continue long-term fiscal planning to weather this and any future economic storms that may be in the forecast," she said. 

As the city puts forth the next two-year budget, she said, departments will scrutinize expenditures, eliminate non-essential spending, and examine programs and services carefully.

Hosterman said the city also will continue to support and promote local businesses.