New Economic Reality 26 September 2001

By Marland W. Townsend

Foster City Moment of Silence honoring 9/11 victims and the consequences of an economic downturn on Foster City's economy. Foster City's budget plan for this is in place.

Before the Moment of Silence, each of the Council Members spoke briefly. I said we must resist the temptation to strike out in blind retribution, or the United States will become involved in an endless cycle of terrorism and revenge. When we have all of the facts on the scope and extent of this heinous strike at our Nation, our response can be decisive, appropriate and complete. It need not be immediate.
Thankfully, Foster City was spared the tragic events that befell New York and Washington D.C. However Foster City and the rest of the United States will not be spared very serious economic repercussions. I cannot predict the depth of the economic downturn now being accelerated as a result of the attack on September 11th, but I can report that your City Government is prepared to deal with such a downturn.
We prepared for an economic downturn through our Five Year Financial Plan. I insisted this plan include a `most conservative scenario' as well as a `most likely scenario' to enable the City Council to recognize an economic downturn and take early and sufficient corrective action. Action must be taken as early as the 2002-2003 Budget, but no later than the 2003-2004 Budget, if we are to make a timely mid-course correction in the City's Five Year Financial Plan.
What these mid-course corrections will be depends upon the magnitude of the downward trend. There are certain items in our Financial Plan that must be protected, and certain items that can either be delayed or eliminated. We must protect the operating budget for our public safety functions. This includes the Fire and Police Departments and the water and sewer divisions of the Public Works Department. We must protect the City employees because in time of stress, they represent the most loyal and capable resources to keep the City operating.
We must be prepared to delay or reduce some, but not all Capital Improvement Projects. We must further improve our infrastructure in order to attract and support private business investment in Foster City. Our central location on the Peninsula is a powerful advantage. Our lack of additional land for business to build new facilities can only be compensated for through superior technical infrastructure. We must not only remain vigilant regarding our physical security, we must remain vigilant regarding Foster City's economic security.

Marland Townsend