Brisbane faces financial deficit

The city is facing a $2.3 million deficit in the next fiscal year and officials may raise business license fees and a hotel tax to offset the looming debt.

With a population of fewer than 4,000 residents, the city is the slowest growing city in San Mateo County and generates most of its revenue through sales tax from lumber and home appliance businesses, said Stuart Schillinger, administrative services director.

Brisbane is experiencing what the rest of the country is experiencing with a slowdown in new construction,” he said.

The city already has put a freeze on all open positions and halted several programs such as installing cameras at the marina. Now, the city is considering increasing hotel tax from 10 percent to 12 percent as well as raising its business license fees, which would have to be approved by voters.

Schillinger said businesses that earn a gross of $10 million in revenue pay currently less than $10,000 in annual fees to the city. The new fee would increase to $35,000.

svasilyuk@examiner.com

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