Decision 2013: Gloria urges fiscal wisdom
DOWNTOWN – The mayoral candidates and council members were cautioned today to restrain their spending desires. The City's check book isn't open, and we can't pave the streets in gold.
That's the message from Interim Mayor Todd Gloria as he presented the city's five year budget outlook.
“The Council is right to take those thing on but we have to match those against our fiscal reality, and that is one of improving finances but not ones where we can take care of every need in every community.”
The five-year financial projection begins with a deficit in 2015 of 19.1 million dollars, and absent any additional spending, the remaining four years will yield surpluses.
The current level of city services will be maintained with new revenue.
“I fully expect we'll be able to overcome the projected deficit,” says Gloria, “without sacrificing neighborhood services thanks in part to higher property tax revenues.”
Gloria says the City has come a long way since 2009 when $90 million in cuts had to be made, and while we've turned a corner, resources remain limited.
“We don't have enough funds to accommodate all the wishes and desires but what we want to be clear with everyone what these things cost and allow the public to grapple with them and help us prioritize.”
Mayors over the last several years have proposed balanced budgets, but when it was sent to the council, additional spending was added resulting in deficits. It could happen again this year.
The City Council has already approved up to $28 million in additional spending to the police department, along with more money for the arts, and construction of new fire stations.
“The Council is right to take those thing on but we have to match those against our fiscal reality, and that is one of improving finances but not ones where we can take care of every need in every community.”
THESE COUNCIL MANDATES COUPLED WITH STATE AND FEDERAL MANDATES COULD BLOW A HUGE HOLE IN THE BUDGET. “They are projected to reduce revenues by $2.5 million while increasing expenditures by $40.5 million just next year,” says Gloria, “bringing next year's deficit to $62.1 million if we move forward with our current plans.”
And that brings us to all of the promises the mayoral candidates are offering to lure votes – except for Mike Aguirre.
Gloria cautions the rest to temper their wants and desires.
“This is a way to allow the mayoral candidates to see what the future looks like, and hopefully adjust their representations to match that, ah, I recognize you campaign in poetry but govern in prose, ah, here's the prose.”
Next year's shortfall was only $7 million last week, but the Pension Board adjusted its investment strategy on Friday, and that added $12 million dollars to the City's contribution to the pension system, and to next year's deficit.
Steve Bosh
KUSI News
