Money Matters

The City of Menlo Park relies primarily on local businesses for revenue from property, sales, transient occupancy taxes, and utility user taxes, as well as business license fees, franchise fees, fines, forfeitures, and charges for services. These monies flow into the city's general fund, which pays for administrative and community services, public works, development projects, library, police, and overall infrastructure. Despite efforts to reduce costs, Menlo Park's budget deficit continues to grow and the city's options will be to further cut services, tap its reserves, or increase taxes.

Menlo Gateway Helps City Revenue Picture

City revenues have been declining and are expected to decline further in the coming year. The current city budget estimates a modest increase in revenues of only $1.4 million in the Fiscal Year 09-10 budget. As a result Menlo Park has had to cut services, reduce hours, defer maintenance, and lay off about 30 employees.

Existing development in the Bohannon Industrial Park, the proposed site for Menlo Gateway, generates only $314,000 in total annual property tax revenue and about $36,000 in annual city property tax revenue. However, Menlo Gateway would deliver at least $3.2 million in total annual property tax revenue, with $370,000 going to the city general fund annually.  And according to Menlo Park’s fiscal analysis, an additional $14 million will be paid as a one-time fee to the city, for sewer, water, and traffic improvements, and affordable housing, to name a few.

Schools Benefit Too

In addition to benefitting the city's general fund, Menlo Gateway would also generate about $1.4 million for local elementary, high school, and junior college districts.

To learn more about the financial analysis and tax benefits to Menlo Park from the Menlo Gateway project, visit www.menlogateway.com/public-benefits.