Council Passes Budget; City Manager Warns of Possible $10M State Grab

The City Council unanimously approved a $73.55 million budget Tuesday night despite the state's continuing threat to eliminate redevelopment agencies.

The budget, which includes agreements from two employee groups, was passed as city leaders blasted state legislators for considering a budget that includes local dollars.

"There is major uncertainty at the state level," said City Manager Penny Riley, who said two state bills would have a "major effect on Poway's fiscal health."

The adopted 2011-12 fiscal year budget totaling $73.55 million includes a reduction in services, according to the report. Although the budget does not include further personnel cuts, the city's General Fund revenue remains $7 million lower than it was in 2007 and shows tax revenue also remains stagnant.

The budget also includes an agreement with 166 management/confidential employees and labor union Teamsters Local 911 but does not include final contracts with the Firefighters Association, which represents 58 workers. According to Assistant City Manager Tina White, a tentative agreement with the association is on the table. The agreements are for two years.

Although the budget passed by city leaders is balanced, it doesn't consider how the state will close its $26 billion budget gap as Democrats and Republicans struggle to make amends and please the governor, who recently vetoed a proposed budget and continues to lobby for the elimination of redevelopment agencies.

Riley told council members if a budget is adopted or should the governor sign Assembly Bills 1X-26 and 1X-27, which seek to eliminate redevelopment agencies and divert the money to the state, staff would present a revised budget. Riley called the state proposals "outrageous" and said the proposed bills could cost Poway up to $10 million in the next fiscal year and $2 million in the following year.

Councilwoman Merrilee Boyack echoed Riley's concerns about the state government and urged Powegians to write to legislators, whom she said were proposing "creative and manipulative" ways to grab money from municipalities as a way to close the budget.

"Our biggest threat right now isn't the economy," Boyack said. "It's the state."

The council's concerns are being mirrored throughout the state by other city leaders who have lobbied the governor and legislature not to include local dollars in their budget proposals.

The budget will go into effect the start of the fiscal year on July 1.

In other council business:

• Council members adopted a resolution to collect 2010 weed and nuisance abatement charges on the county tax assessor’s roll.  According to the report, the city "anticipates that $38,009.22 will be recovered for property abatements" next fiscal year.
• Council members also adopted resolutions to classify various components of fund balance and granted a $680,000 request to further fund Oak Knoll Road improvements. The project is expected to be completed August 2011.
• City Council held the first reading of a series of proposed ordinances that would amend the Poway Municipal Code to streamline certain permits—initially lobbied by Councilman John Mullin. The adoption of the ordinances is scheduled for the City Council meeting on July 5.
• Prior to the meeting, council members held a closed session regarding the case between Peter De Hoff who filed a lawsuit against the city regarding the attempted installation of lighting at Arbolitos Park.

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