San Bernardino may still evade deep budget reductions, but earlier cuts to SBFD unchanged

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- It may turn out that the City Council can still avoid a repeat of the kinds of painful budget cuts that made previous attempts to stay out of the red such a strenuous process.

City Manager Charles McNeely showed the City Council revised budget proposals on Monday that continues to rely on borrowing, accounting shifts and spending cuts that trim -- but do not eliminate -- city operations.

Also on Monday, Fifth Ward Councilman Chas Kelley made a renewed effort to convince his colleagues to restore funding to eight firefighting positions that were deleted from the budget in February.

Ultimately, Monday marked the third time the council rejected a bid to restore firefighting positions, although Monday marked the first occasion that the council took an up-and-down vote instead of relying upon procedural tactics to block Kelley's plan.

McNeely's revised budget plan calls for City Hall to borrow $1.3 million from the San Bernardino Economic Development Agency. The EDA is responsible for redevelopment projects and has its own budget.
The city manager had previously proposed borrowing $5.4 million from the EDA that number has shrunk after Gov. Arnold Schwarzenegger and the Legislature agreed that Sacramento will "borrow" -- or "raid," depending on one's point of view -- local governments' property tax and redevelopment funds to balance California's budget.

"We are very confident that we will be able to get that $1.3 million (loan)," McNeely said.

San Bernardino officials expect to lose about $2.9 million in city revenues to the state. McNeely now proposes to make up that very amount by borrowing from California Communities, a joint powers authority sponsored by the League of California Cities and California Association of Counties.

The EDA stands to lose about $11.9 million to Sacramento, but San Bernardino officials discussed that number as a potential loss with the expectation that the state's move would be challenged in court.

Voicing the possibility that the EDA could afford to lend city government more than the proposed $1.3 million, Kelley asked that the city borrow more from the EDA to finance eight firefighting positions that were deleted in February's budget cuts.

Such a move would have added more than $1 million to the loan, but Kelley said Fire Department needs to be a priority and that better funding sources should become available after the current recession ends.

"Times are going to get better," he said emphatically.

Kelley's proposal went down by a 4-2 vote. Seventh Ward Councilwoman Wendy McCammack was the only council member to support Kelley. Councilmen Dennis Baxter, Tobin Brinker, Fred Shorett and Rikke Van Johnson voted no.

Johnson said the council should convene at another time to figure out a way to fund the Fire Department instead of suddenly agreeing to take a loan to pay firefighters.

"We can't have these discussions now about borrowing money to pay for stuff. That's just ridiculous," he said.

Other proposals in McNeely's new plan include:

- Shifting $500,000 in street maintenance costs from the general fund tk to the city's share of Measure I transportation financing.

- Using $200,000 in the Police Department's share of development impact fees to make car payments on 28 patrol cars

- Trying to save $900,000 by allowing various city jobs to remain vacant and negotiating 5 percent concessions from city contractors.

Cost-savings proposals that have been a part of discussions throughout this year's budget talks include:

- Negotiating with health insurance providers to save $350,000 on health insurance premiums. This could include higher co-pays for city employees.

- Cutting $200,000 worth of street-striping work from the budget.

- Reorganizing the Fire Department's top administration in a plan that is projected to save $223,000.

The council could adopt a budget for fiscal 2009-10 at its Aug. 17 meeting.