Red Words

Looking back at some of the year's big stories:

- The city's budget shortfall was the dominant story in 2007 and promises to be the one of the biggest issues for 2008 as well.
The City Council confronted money problems last February by instituting a hiring freeze after five straight years in which the council approved spending plans that allowed expenditures to exceed revenues. Councilmembers passed a balanced budget law in May.
Accordingly, the council adopted a balanced budget for the fiscal year ending June 30, 2008 and City Manager N. Enrique Martinez assured the council at a December City Council meeting that Redland's budget is expected to be in the black on that date.
The issue is not yet fully resolved. Redlands faces a budget shortfall as large as $3.2 million for the coming fiscal year if officials hire new employees to fill vacant positions.

- Voters cast ballots for fiscal conservatism in November when challenger Jerry Bean emerged as the top vote-getter in a seven-candidate race. Bean campaigned on a platform that stressed his intent to pursue a more efficient and leaner City Hall. Incumbent Pete Aguilar took second place, while Gilberto Gil, a California parole officer with close ties to the city's public employee unions, lost his seat on the council.

- City Manager N. Enrique Martinez came to the city in April as Redlands' top administrator. Martinez started work in Redlands after being placed on administrative leave from the same post in Lynwood.It turned out that Lynwood's council commissioned an investigation of Martinez that concluded he married a subordinate without notifying his superiors there and committed a technical violation of his employment contract.
Martinez's supporters on the Redlands City Council countered that he was retaliated against in Lynwood for not cooperating with shenanigans perpetrated by officials there. Redlands officials have since given Martinez a wide berth to craft fiscal policy and reorganize the city.
Things have not gone as well for the Lynwood officials who Martinez left behind. Los Angeles County prosectors filed charges against two Lynwood council members who were since recalled - along with another pair of officials - by voters in that city.

- Longtime City Treasurer Mike Reynolds waltzed into his eighth term in office as he faced no opponent in the 2007 election but ended the year with career, reputation and freedom in jeopardy after being charged with three felonies.
Reynolds was arrested in late October after his office was investigated by the District Attorney's Public Integrity Unit. He was charged with misappropriation of public funds and two related crimes. Prosecutors have alleged that the treasurer illegally moved about $38,000 from an account under his control to the city's general account to conceal a shortage in Redlands' petty cash supplies.
He pleaded not guilty in San Bernardino Superior Court on Dec. 5. His attorney, Patrick Milligan, has said the transfer was a legitimate use of Reynolds' authority and blamed a subordinate Treasurer's Office employee for faulty bookkeeping.
Reynolds' next court appearance is set for Feb. 13.