City Budget Deficit May Be Nearly $100 Million; City Council Weighs 300 Options to Fix It

The San Diego City Council on Monday began discussing a menu of nearly 300 options to fix the city's budget problem culled from council members, citizens and employee groups.

City council members debated just how large the city's deficit is, questioning how much of the money needed to fix city streets should be included in that figure. The working deficit figure is $56.7 million from Mayor Jerry Sanders' five-year outlook, but an Independent Budget Analyst's report presented Monday put the figure at $95.8 million, including lower property tax revenue projections than in the mayor's five-year outlook, funds for fire station restorations and employee raises. An additional $80 million not included in the deficit figure is needed to bring streets, facilities and storm drains to a "high level of service," the report states. 

That brings the city's "true" deficit to $175.8 million, said Councilman Carl DeMaio, who represents Rancho Bernardo in District 5.

DeMaio compared paying to build new streets without having the money to repair them to buying a new car and then not changing the oil for 10 years. The initial investment may be a good move, he said, but it may not be if it can't be maintained.

A city official said $800-$900 million is needed to "catch up to a desired level of maintenance" for total citywide deferred maintenance.

Councilman Todd Gloria said the council should prioritize the budget options that can be implemented by the start of Fiscal Year 2012, which is July 1. The council awaits more information on projected cost savings with the options before making decisions.

Here are some of the 295 budget options, grouped into categories by the Office of the Independent Budget Analyst which created the list. All of the options are attached as  PDF to this story.

Categories and options:

• Managed competition/privatization.
  • Privatize Miramar Landfill, airports and golf courses.
  • Consider outsourcing entire trash collection operation.
• Operational reforms/efficiencies.
  • Cancel Civic Center project/lock in lease rates.
  • Eliminate all part-time positions.
• Pension reform.
  • Reduce and freeze "pensionable" pay.
  • Switch to defined contribution retirement plan for elected officials.
• OPEB reform.
  • Freeze annual benefit at $4,000, $1,000 or $0.
• Salary/benefit reforms.
  • Reform special pays.
  • Explore eliminating disability benefits as vested benefit.
• Revenue enhancements.
  • Increase or implement certain taxes (marijuana; business license; commercial parking; sales; rental car).
  • Charge annual membership for dog parks.
• Service level/staff reductions.
  • Cut mayor and council budgets by 10 percent.
  • Replace lifeguards and place signs that read "no lifeguards, swim at own risk."
• Miscellaneous/other.
  • Freeze new spending at $20 million each year.
  • Examine bankruptcy.
• Service level maintenance/enhancement or restoration.
  • Restore fire stations and lifeguards.
  • Allow communities to prioritize if services are to be cut.
• Budget policies and practices (non-financial).
  • Consider alternative to Library Ordinance that requires 6 percent of general fund be used for the library.
  • Adopt concept of a "Poison Pill"— a pre-approved formula for meeting future revenue shortfalls if mayor/City Council can't solve structural budget problems with normal procedures.
• Performance management (non-financial).
  • Eliminate last hired-first fired policy.
  • Improve employee training.
• Administrative policy (non financial).
  • Promote citywide broadband internet access.
  • Declare a fiscal state of emergency.