Tough budget decisions before city

While the San Carlos City Council sharpened its pencil to close a $2.7 million budget shortfall Monday night, the underlying debate was less about the programs and services on the chopping block and more about a possible revenue tax in the fall.

The council met at a budget study session with plans to meet its 10th year of necessary cuts head on. While the council did agree to a list of recommendations by City Manager Mark Weiss, a discussion of whether to use $675,000 in Economic Uncertainty Reserves highlighted the panel’s divided opinions on whether to ask residents to pony up more money.

Councilman Matt Grocott balked at the idea of a sales or utility tax to raise approximately $2 million annually, saying the city needs to stop living beyond its means and expect residents to shoulder the burden.

"I think the cuts have to come from elsewhere,” Grocott said. "I think we need to set the reset button. We’re in different economic times.”

If a tax isn’t put before voters or doesn’t pass, as early as July 1, 2010, the city would be looking at automating the City Hall main phone number, cutting planning and building division hours, closing Cedar, San Carlos Avenue and Vista parks, reducing park maintenance, removing the Laurel Street flower baskets and reducing parking enforcement. Cuts are also planned for a building inspector, 2.5 parks maintenance workers, the youth center part-time staff and a recreation coordinator.

More telling, according to Weiss, is that if the tax doesn’t become a reality the city will have to lay off full-time staff for the first time in recent history.

Based on input and decisions last night — keep the Airport Roundtable funding, cut the Week of the Family money — the proposed budget will be revised and presented to the City Council June 8 for adoption.

The council wasn’t happy making decisions for an entire year, though, and requested a mid-year budget review. By that point, the city will know if a tax was approved by voters.

The notion of putting off cuts appeared to rankle Weiss who suggested the council begin making choices this year rather than wait for bigger decisions later.

Mayor Bob Grassilli and Councilman Brad Lewis, however, both voiced a desire for more input.

"I support getting us to a place where the public can have a voice and then moving forward,” Lewis said in support of staving off some cuts to tutoring programs and commission staffing with the one-time shot of $675,000 from the Economic Uncertainties Reserve.

Grassilli echoed the sentiment.

"Let the people of San Carlos tell us what they want,” he said.

While Grassilli was fine with the figure, he wasn’t necessarily comfortable with the suggested list of saved programs and services. On the other hand, Councilman Omar Ahmad suggested the council bear painful cuts right now and not spend those reserves.

"We have been experiencing death by a thousand paper cuts for a decade,” Ahmad said, adding that the city should "take the cuts up front then move from there.”

The proposed 2009-10 budget’s key cuts and program elimination included tennis court maintenance at Arguello Park, a part-time administrative clerk, equipment replacement funding and the infrastructure contribution from the general fund. As Weiss guided the council through the decision-making, he questioned some choices that seemed at odds such as cutting a parks superintendent while trying to maintain the program.

The proposed cuts last night mark the 10th year of belt-tightening in San Carlos. The city’s problems are a mix of ongoing problems and the recent economic crunch — a mix of declining revenue, increased state takeaways and mandates and unexpected hits like a $1 million loss from the Lehman Brothers bankruptcy, according to Weiss.

A number of the options on this year’s chopping block echo those in jeopardy during previous budget study sessions. Last year, for instance, the Healthy Cities School Tutoring Program was slated for elimination to close a nearly $3 million budget deficit but parents and teachers successfully argued the benefits far outweighed the costs.

This year, fewer recommended cuts were added back in. Grocott also bristled as some suggestions, arguing instead payroll may deserve the greater cuts.

City officials hope more residents offer opinions tonight and tomorrow at one of two town hall meetings on the necessary belt-tightening and proposed tax.

Resident Pat Bell, one of the few attending the budget study session Monday night, didn’t hide what she thought the council should do.

"People of this city have to own up that they want more than they’ve been willing to pay for,” she said.

Bell, suggested sparing "people costs” like wages and getting residents’ attention about the dire financial situation in other ways.

"If you closed a field, they’d notice,” she said.

Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.

Info box: The San Carlos Community Meetings are 7 p.m. Tuesday, May 12 and Wednesday, May 13 in the Library Conference Rooms, 600 Elm St., San Carlos.