SAN CLEMENTE : Fiscal Outlook Sunny, Despite Bond Crisis

Despite the county bond crisis, city finances have actually improved over past years, San Clemente finance officers told a joint meeting of the City Council and city commissions last week.

Through February, revenue is up more than $700,000 from last year, said city finance officer Jim Mies. At the same time last year, San Clemente expenditures exceeded revenue by $1.6 million.

The city is expected to stay about $700,000 in the black through the end of the year, he said. The 1994-95 fiscal budget for San Clemente is $20 million.

City Manager Michael W. Parness emphasized that San Clemente’s operating budget was relatively unaffected by the bond crisis. The city’s $34.6-million pool investment was money set aside for long-term projects, leaving the daily operating budget unaffected, he said.

Ironically, the county was responsible for most of the windfall. After contracting with the county for fire services, San Clemente sold its fire equipment to the county for $640,000.

It was good news for a community that has experienced financial hard times in recent years. The last three years have seen city coffers drained by floods, landslides and state tax revenue cuts leading to budget shortfalls of up to $1 million.

“We’re finally stabilizing after all these years,” Mies said. “The last three years definitely weren’t normal years.”

The recent bankruptcy settlement negotiated between the county and pool investors will mean the city gets its capital back faster than expected, he added.

“The bottom line is we’re much further ahead than any one of us thought we would be,” Parness said. “For us to be able to reach a settlement in four months (after the county declared bankruptcy in December) with 192 agencies is incredible.”