The employee housing program is still moving forward but it has been sent back to the Land Use Committee to be reviewed and possibly resized. It was originally authorized at $675k and since then, the economy has pretty much disintegrated before our eyes. That $675k was coming directly from the fund balance and in such uncertain economic times the City needs to keep its options open.
So, here is what I am going to propose: fund it at a lower rate around $250k for the next two years and we’ll take a look at it after that. Keep in mind that this program passed the Council 6-0 so there is clearly support for it but prudence demands that we at least discuss resizing it for the near term.
October 7, 2008 at 10:14 pm
It seems prudent to cut it back some as you propose. I know it’s a good program that you and others have strongly pushed, so cutting it back can’t be easy for you. But difficult times call for adjustments. Cutting it back by two-thirds probably strikes an appropriate balance, in part because current lower housing costs presumably translate into a lower need for housing assistance.