Tough Times, Tough Choices

by Scott Peters
July 2005

These are challenging times for our city. As your Councilmember and Chair of the Strong Mayor Transition Committee, I am focused on three historic challenges: completing the City's delayed audits for Fiscal Years 2003 and 2004; transitioning to a new form of government; and repairing the City's pension system, in part by making tough budget choices. We took a major step forward when we adopted the FY 2006 budget on June 26, 2005.

This year's $865 million dollar general fund budget demonstrated our resolve to make the difficult choices necessary to regain our City's fiscal integrity. We addressed another year of cuts from Sacramento, which "borrowed" $20 million of local property taxes, and we met the Council's commitment to pay the full actuarial payment to our retirement fund, a $33 million increase from last year. The City's new labor agreements froze salary and benefit packages, required employee contributions to reduce the San Diego City Employees Retirement System's unfunded actuarial accrued liability, and restricted certain retirement benefits for new hires. The city eliminated 280 positions, including layoffs. And we cut some of the programs that the city began in the 1990s without real funding support.

The bond rating agencies are watching our city very closely and should be pleased with the discipline the City showed in this budget. For instance, Fitch Ratings recently complimented the city on its labor agreements, but noted "for the city to achieve financial balance over the forecast period, service reductions and additional personnel savings are needed." We believe that we have responded to Fitch's concerns.

I did as much as possible to minimize the effects on our district of these difficult cuts. Unfortunately, library hours in Rancho Peñasquitos will be reduced from 48 to 41 hours per week.

However, in Rancho Peñasquitos and Torrey Highlands, residents will continue to enjoy park openings and increased open space. Although there were city-wide cuts in Park and Recreation maintenance personnel, I was able to find funding to support our area parks. We funded a park maintenance position expressly to support the Rancho Peñasquitos Skate Park, which opened in April, and two parks that will open in the coming months. We plan grand openings for the Rancho Peñasquitos Linear Park and the 30-acre Black Mountain Ranch Neighborhood Park in the next two months. None of these community assets will be negatively affected in this budget cycle.

The Northwestern Police Station in Carmel Valley continues with construction and is fully funded. This police station will take pressure off of the Northeastern Station in Rancho Peñasquitos, which covers most of the area in the city along the northern I-15 corridor, and will be of particular benefit to the newly developing Torrey Highlands. It will open next year. The City Manager recommended elimination of 27 SDPD Community Service Officer ("CSO") in FY 2006. The CSOs have provided important services to assist our police. With the cooperation and insight of Police Chief Bill Lansdowne, the City Council was able to save 10 of those positions.

This year we faced many hard challenges. I want thank all of the community members that contacted me or took the time to come down to City Hall and testify during the budget hearings. By facing the City's budgetary issues head on, my hope is that our fine City will remain a viable entity that admirably serves its residents and visitors. I look forward to working with you and your neighbors to continue to solve these challenges together.