top of page

Charting Our Future: Committees, Consultants, and Budget Hurdles

abarak54

Updated: 4 days ago




(Written in my personal capacity as a St. Helena City Council member, not on behalf of the entire Council or the City of St. Helena.)


I’d like to share my personal thoughts on the budget challenges our city faces, the role of our new advisory finance committee, and why I believe a business transformation consultant might be necessary. Please remember, I’m speaking only for myself—not for the entire City Council or the City of St. Helena.


Budget Overview and Our Reserves


St. Helena currently has an annual budget gap of around $3 million. Thankfully, we recently discovered our reserves are stronger than expected—about 49% instead of the previously assumed 31% due to a fortunate forecasting surprise with our sales tax revenue. While this is good news in the short term, it doesn’t change the underlying fact that we spend more than we bring in. If we continue drawing down reserves to cover this gap--and we will unless we balance our budget--we would hover around 19% reserves breaching our 30% reserve threshold in budget year 2026. Time is not our ally.


The CalPERS Challenge


A major factor in our budget discussions is our CalPERS pension liability, which stands at about $16.5 million and grows at an estimated 5.5% per year (for context, when I wrote about this 6 months ago our liabilities were at 15.5m). While pension costs affect most cities statewide, we feel these pressures acutely here in St. Helena. Rising annual payments--currently at 1 million and change and rising-- to CalPERS divert resources from essential services like roads, public safety, and community programs. If we don’t address these escalating costs, we’ll be forced to make more difficult trade-offs down the road or fund them with additional revenue.


Capital Expenditures and Deferred Maintenance


We also have significant deferred maintenance. Our city’s infrastructure and equipment depreciate by about $1 million annually, yet we allocate only around $50,000 to replace or repair them. Underfunding capital expenditures for too long can lead to bigger bills later—neglected vehicles and buildings eventually require more expensive fixes or replacements.


The Financial Advisory Committee’s Role


A financial advisory committee of community members has formed which I believe is a great opportunity. This group can take a fresh look at our finances and offer new ideas. But it’s important to note that the committee is independent and can decide its own focus without city or council approval. They might concentrate on budget cuts, waste & water expenditures, or something else entirely. Since we don’t know exactly where their exploration will lead, it’s risky to assume they’ll tackle our immediate budget shortfalls or produce recommendations in time for critical deadlines.


Why Consider a Business Transformation Consultant?


Some folks have asked why we would pay for a consultant if we’re trying to cut costs. For me, it’s about modernizing our operations. We’re not looking for a simple 5% cut across every department--selective cuts, based on evaluation and solid evidence of effectiveness make more fiscal sense; while incorporating targeted and measured cuts, we want to identify ways to restructure or combine functions—such as merging certain aspects of Planning, Building, and Public Works Engineering—to be more efficient and responsive to residents in builds or remodels to avoid getting shuffled between different departments. These types of transformations can require specialized knowledge and dedicated time that our City Manager and department heads may not have, given their day-to-day responsibilities. Bringing in a targeted consultant could yield more effective, long-term savings and better service delivery. Ultimately, I would like to see Saint Helena city government aspire to be a best run government that focuses on making it easier for residents to do business/interact with them.


Deadlines for the November Ballot


If we decide to place a revenue measure on the ballot this November, we need to start the process soon, and that would require the City Council to declare a financial emergency in order to go on the ballot in an off year. Preparing ballot language, scheduling public hearings, and meeting legal deadlines can take months. If we miss this cutoff, we’d have to wait until 2026—leaving our budget gap unaddressed for another year.

If a 2026 measure then fails at the ballot box, we could face dire consequences. At that point, our options might include deep cuts to government services, allowing our reserves to fall below the 30% threshold, or even selling off city assets—such as the railroad or Main Street properties—to bridge the deficit or some combination of the available options to sustain core city services. Such a move could reflect poorly on our financial stability in the eyes of rating agencies like S&P. Clearly, that’s not where we want to end up.


Why a Temporary Discretionary Spending Freeze Doesn’t Mean Stopping All City Operations


Some worry this proposed freeze* will grind everything to a halt or hurt morale, but the motion is designed with flexibility, transparency, and a clear message in mind: we can no longer live beyond our means. If the motion is passed, the City Council can still approve critical spending for core functions & unforeseen events—public safety, legal compliance, or other urgent needs—on a case-by-case basis, ensuring that essential services continue. However, any non-critical spending must now be publicly justified and approved by the Council before moving forward. Confronting our $3 million annual deficit in this measured way helps us avoid more painful cuts later. In essence, this pause on discretionary spending reinforces that all new costs must be carefully vetted, aligning our everyday operations with our long-term financial reality. The motion proposed is sane, has the appropriate safeguards to mitigate adverse consequences, and is temporary.


Moving in Parallel


This is why, in my view, we need to pursue two tracks at once. While the advisory committee begins its work, we should also explore bringing in an expert to jump-start modernization efforts. Meanwhile, by instituting a targeted freeze on discretionary spending, we prevent our short-term deficit from ballooning further. If the committee quickly recommends cost-saving measures, fantastic—we’ll incorporate those. If they need more time or choose a different focus, we still won’t be left scrambling to address a looming budget crisis before the November deadline.


Working Together for St. Helena


I firmly believe we can balance the committee’s independent creativity with the practical necessity of planning ahead. Our challenges—rising pension costs, deferred maintenance, and a structural budget gap—won’t resolve themselves. Whatever course we take, we must act decisively and thoughtfully to protect our city’s future.

Again, these are my personal views. Thank you for reading, and please let me know your thoughts or concerns. By working together—combining community input, professional expertise, and timely decision-making—I’m confident we can preserve St. Helena’s unique character while securing a more stable and prosperous future.





*Actual motion: “I move that the City of St. Helena institute a temporary freeze on all new hires, salary increases not contractually obligated, reclassifications, and discretionary spending until the City’s financial situation is clarified and sustainable funding solutions are in place to address the structural deficit.
However, the Council retains the authority to approve exceptions on a case-by-case basis when such actions are deemed critical for:
  • Public safety
  • Legal compliance or liability mitigation
  • Other urgent needs, at the Council’s discretion, where delaying action would result in significant harm to the City or its residents
All requests for exceptions must be submitted to the Council for review and approval at a public meeting, accompanied by a clear justification for the necessity of the expenditure or decision.
This measure reflects the City’s commitment to fiscal responsibility while maintaining flexibility to address critical and unforeseen needs.”

Recent Posts

See All

10 Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
Guest
4 days ago

Before hiring a consultant ( which has not proven popular or effective in the eyes of most voters), it may be wise to at least let the Finance committee meet and communicate their intended agenda. I would not be in favor of hiring a specialized consultant without a clear path to cost savings solutions demonstrated.

Also, if Calpers is going to take St Helena down someday, regardless of how much we try to catch up on the ever expanding debt and cost Id like a better understanding and explanation on that situation. Thank you for your transparent revelations.

Like
abarak54
3 days ago
Replying to

Hello--please look at my blog on calpers 6 months back, it will be linked to this blog or you can navigate to the blog tab on my website and scroll down until you see it. If you want to discuss in more detail, please consider coming on the 1st of March for a community conversation event--you can RSVP in the event section. Or just click on the link at the bottom of this blog. As to the consultant--if the city could offer them a clear path way to cost savings they would of just simply taken it and there would be no need for a consultant. Unfortunately, that is not the case here. Bit of a chicken and the egg.

Like

Guest
4 days ago
Rated 5 out of 5 stars.

So great to have your dedicated attention to the city's needs. Thank you!

Like

Guest
6 days ago
Rated 5 out of 5 stars.

Thank you for these clearly outlined thoughts. I am concerned that those of us in the middle class cannot sustain a life in St. Helena if we continue to be taxed and taxed and taxed. It is very expensive to live here. I really appreciate your energy and commitment in your council role.

Like

Susan
Feb 01
Rated 5 out of 5 stars.

Thank you for your clear-eyed analysis of the financial challenges our city faces. We’ve never had communication like this before from the city and it is so appreciated. You are an asset to St. Helena.

Like

Michael Haley
Feb 01
Rated 5 out of 5 stars.

thanks for all your work, Aaron, and for keeping us informed.

I wonder about a sales tax like the city of Napa recently passed, 1 cent which gave them quite a bit of money. I am still new and it may be something that has been tried or that so many here are against already, I have no idea but myself I would vote for it if it solved the problem. It would also respond to the criticisms of the recent transfer tax in that it would apply to everyone, and incude a lot of tourist dollars as well.

Like
Michael Haley
Feb 01
Replying to

thank you

Like

SUBSCRIBE TO OUR NEWSLETTER

Get the latest updates
on the City Council 

Thanks for submitting!

Aaron Barak

-St. Helena City Council -

  • Facebook

© 2024 by Aaron Barak For City Council 2024. Built by ME on WIX.  No consultants here—we're running a tight ship, and that same spirit of efficiency and accountability will guide my actions on the City Council. Our city's governance will be managed with care, ensuring that every decision is made in the best interest of our community, with no unnecessary expenditures.

1580 Hillview Place

Saint Helena CA 94574


abarak@msn.com

408-386-7549

bottom of page