Measure U Funds Set to Fix Budget, Not Roads


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Facing what many expected to be a nearly $9 million budget shortfall, Richmond city staff Tuesday night presented a balanced budget before the City Council. 

In addition to reducing city staff positions and cutting department budgets, the draft budget allocates an estimated $8 million in funds from Measure U, a half-cent sales tax approved by voters in November, to close the potential budget shortfall. But the use of these funds, which was presented under the guise of being used to repair the city’s crumbling roads among other uses, is causing concern among Councilmembers. 

“We made certain commitments when Measure U was on the ballot,”said Councilmember Jael Myrick. “How do we sustain the balance that we have here and still keep all the commitments we made?”

To that, City Manager Bill Lindsay recommended a number of different one-time funding measures, none of which would allow for the long-term road improvement plan that surrounded the discussion of Measure U last fall. 

“I’m probably as disappointed as you are that we cannot carve out $3 million for this,”Lindsay explained. “But if you take $3 million for this, you’re going to have to find somewhere else to cut $3 million from the budget.”

Councilmember Gayle McLaughlin echoed Myrick’s concerns. “Is there any additional money for road repair from Measure U?”she asked.

“It’s the same as last year,”explained the City Manager. “We didn’t draw any specifics between Measure U dollars and other dollars.”

Much of the Measure U funds are being used to cover the loss of $6 million from a Chevron tax settlement that had supplemented the city’s revenue in previous years. Funds from the tax settlement expired at the beginning of this year.

To Councilmember Vinay Pimplé, the reallocation of Measure U funds away from road repairs is short-sighted. “The cost of repairing streets escalates dramatically when it is postponed,” Pimplé wrote for Radio Free Richmond. “Thus, we will have to make much bigger cuts in services if we postpone these repairs.”

However, considering the recent credit downgrades from Moody’s Investor Services, Lindsay advised during Tuesday’s meeting that the sacrifice was necessary. “We’re not recommending any additional debt for any reason,”he said. 

City Council will consider the city’s 2015-16 budget during their next two meetings in preparation for adoption by the end of the month.

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  • commented 2015-06-17 16:37:23 -0700
    Simple Bait ans Switch tactics by the City Council. The CC knew of the structural deficit as they put measure J on the ballot, touting it as a pot hole tax, knowing full well that it would have to be used to plug the structural deficit. Do you think it would have passed if it was sold as a general fund pension bailout — probably not!
  • commented 2015-06-17 15:30:12 -0700
    “To those of us who have been studying city finances, this was no surprise. In fact, the Moody’s downgrade fails to mention the $6M reduction in revenue from the Chevron tax settlement beginning this year. Had Moody’s factored this in, the downgrade may well have been even bigger.”

    Vinay Pimplé: On the Budget Deficit, June 16, 2015, Radio Free Richmond

    After the voters passed Measure T, a tax on Chevron, Chevron challenged it in court.

    In 2010 Mike Parker (RPA member and Point Richmond resident) along with the rest of the RPA leadership pushed through, without any public discussion, a settlement of this litigation brokered by Council members Tom Butt, Dr. Jeff Ritterman (RPA member), Jim Rogers (all Point Richmond residents), City Manager Bill Lindsay and former City Attorney Randy Riddle.

    The settlement gave the City $114 million from Chevron paid on a graduated schedule over fifteen years.

    In exchange, Chevron demanded a fifteen-year moratorium on the City levying any new taxes on Chevron.

    The significance of the Measure T sellout cannot be measured in dollars and cents alone. The passage of Measure T was a grassroots effort against enormous moneyed opposition that resulted in the people standing up to Chevron for the first time in Richmond’s history.

    Mike Parker and the RPA’s so-called progressive leadership squandered this major victory, setting back Richmond’s nascent grassroots movement for years to come.

    And now the chickens are coming home to roost!!!
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