SAN CLEMENTE : City Council Adopts Pared-Down Budget

Although more severe state funding cuts are expected soon, the City Council on Wednesday adopted a $20-million general-fund budget that already includes $1.9 million in reductions but no tax increases.

Before the adoption of the budget, which was developed in part by a council-appointed citizens’ committee, City Manager Michael W. Parness told council members that the city could lose up to $2 million more, or 10% of its budget, in cuts from the state.

The city, with its weak sales tax base, could be hit hard if state legislators act on proposals to divert vehicle registration fees and a chunk of property tax funds from cities, Parness said.

“Entire programs will be deleted,” he warned. “There is no way around it.”

To help come up with a backup plan as soon as possible, the city recently hired private consultant John Heiss & Associates for an estimated $5,000 to help find more budget cuts.

The consultant will also be reviewing the remaining proposals in the citizens’ committee report, including a recommendation to contract with the county for police and fire services.

Among the budget cuts already adopted by the council were the dismantling of the Public Works Department, which was merged with other departments, elimination of about 17 positions, including an assistant city manager, and an end to financial support for all special events, including the Fourth of July fireworks show at the pier. City employees have also accepted a salary freeze and a reduction in some medical benefits, Parness said.

But some residents contended the city should have adopted more cuts from the committee’s estimated $4-million reduction list in the first place, including a decrease in management salaries.

“We’re very disappointed--let’s put it that way,” resident and former Mayor Karoline Koester said.

Councilman Thomas Lorch voted against the budget, saying he believes that more “fat” could have been cut.

“It’s not good enough for me,” he said.