Commitment to Council Goals and Community

Mayor Nakamura expressed deep gratitude for the opportunity to serve the council and the City on a new level. She highlighted the strong goals set for the year ahead:

• Concord Naval Weapons Station: Continuing to push forward on housing and jobs.
• Addressing Homelessness: Continuing to implement strategies to address the needs of those who are unsheltered.
• City Manager Search: Undertaking the search for a new City Manager, leveraging the "long runway" provided by City Manager Barone for the transition.

Tackling the Housing Crisis

Addressing the housing crisis is deemed essential to the city's future, as it impacts adult children, teachers, nurses, first responders, and faith leaders who struggle to find homes near their jobs. The Mayor committed to making progress on the Housing Element commitments, which include Affirmatively Furthering Fair Housing.

Economic Health and Recovery

The Mayor noted that Concord is still recovering from the pandemic, which brought changes to commuting patterns and office use, reducing foot traffic and reshaping city revenue generation.

• The newly adopted Economic Development Strategic Plan will act as a roadmap to foster a stronger, more resilient local economy by supporting local businesses, welcoming innovation, and helping organizations thrive.

Focus on City Finances and Infrastructure

A strong focus will be placed on city finances to ensure Concord's long-term fiscal health.

• Structural Deficit: Despite efforts to establish fiscal stability over the last decade, including downsizing the workforce by 20% and implementing Measure V (a local sales tax), the City is operating with a structural deficit.
• Unsustainable Reserve Use: The current biennial budget relies on strategically using $2.5 million in reserves for FY 2025-26 and $2.8 million for FY 2026-27 just to stay balanced, as ongoing revenues are not keeping pace with ongoing costs. While reserve levels are above the 17% minimum threshold, continued use is not sustainable.
• Revenue Challenges: Major revenues are growing too slowly due to economic changes, resulting in flat sales tax, modest property tax growth, and hotel occupancy tax revenues below pre-pandemic levels.
• Infrastructure Deficit: The City faces a significant infrastructure funding deficit, needing to invest over $24 million more annually than currently available to maintain roads, parks, medians, and buildings.

Recent Council actions to address these challenges include:

• Incorporating $6.4 million in budget cuts, reallocations, and anticipated expenditure savings into the tight operating budgets.
• Adopting a new Economic Development Plan.
• Creating a new Residential Roadway Maintenance Team, starting in July.
• Setting the development of an Infrastructure Investment Plan as a Tier 1 Council Priority for the fiscal year. This plan will include ideas for increasing infrastructure investment revenues and will require community engagement and support.

The Spirit of Concord

The Mayor emphasized that despite the fiscal challenges—which Concord is in a better situation to face than many other cities—the community has a "roll-up-your-sleeves" spirit. She highlighted the strength and vibrancy of Concord through various community efforts:

• Youth and Imagination: Students whose artwork reminds the community of imagination and joy.
• Support Organizations: Groups like the Monument Crisis Center and White Pony Express ensure families have food and support.
• Volunteers: Organizations and groups like Friends of Concord Creeks, Scout troop 444, and the Devil Mountain disc golf club, who contribute to the environment, street cleanliness, and park maintenance.
• Community Gardens: Residents are bringing a community garden to Hillcrest Community Park.
• Faith and Inclusion: Faith communities gathering to Stand Against Hate, reflecting shared values of compassion and inclusion.
• Celebrations and Events: Events like Juneteenth, Concord Pride, and the Turkey Trot, which raised $42,000 for Loaves and Fishes of Contra Costa.

Looking to the Next Generation

The Mayor dedicated the coming year's focus to the City's youth and families, stating they are the reason behind efforts for safer streets, cleaner parks, affordable homes, and climate resilience. The work being done is for the next generation of leaders and neighbors.

Finally, she thanked the city staff for their talent and dedication, the public safety professionals for their service and engagement with families, her colleagues for their trust, and her family for the personal support that makes public service possible.