More Than $11M Deficit Projected For Redwood City

REDWOOD CITY, CA — Redwood City is projecting a deficit of more than $11 million in the upcoming fiscal year and that it will take five years to return to pre-pandemic revenue.

The deficit is expected to reach more than $17 million over the next four years, city officials revealed in a fiscal year update at Monday’s council meeting.

This coming fiscal year’s deficit will be offset by $9.24 million in federal pandemic assistance and $2.52 million in city reserves. Another $6.5 million will be set aside for other pandemic-related deficits.

The city blamed shortfalls in sales and hotel taxes, and pension benefits for current and retiring employees.

City Manager Melissa Stevenson Diaz said Redwood City needs to reimagine the way it serves the community.

“Many departments are stressed beyond capacity, especially as we continue to grapple with staffing constraints due to the pandemic,” Stevenson Diaz said. “Looking ahead, we have to ensure we have the right staff, right services and right resources.”

Click here to view the staff report.