SAN CLEMENTE : Consultant to Study City Budget for Cuts

In anticipation of another severe round of cuts in state funding, the San Clemente City Council recently approved hiring a private consultant to find up to $2 million more in budget cuts.

City Manager Michael W. Parness said the city would be facing dramatic cuts in the general fund budget of about $20 million if state legislators were to act on a proposal to divert vehicle license fees and a chunk of property tax funds away from cities.

“Since the city has such a weak sales tax base, to lose (those funds) would be extremely serious,� he said. “It would require a significant shift in the way we do business.�

To help come up with a backup plan as soon as possible, a council majority last week gave Parness approval to hire the consulting firm of John Heiss & Associates for an estimated $5,000 to $10,000.

The consultants, who have already spent six months analyzing the city budget, will also review a $4.2-million reduction list proposed by a council-appointed citizens’ committee earlier this year, Parness said.

Earlier this month, a majority of the council members said they would be willing to support a $1.9-million reduction plan to help cope with an existing $2.5-million shortfall in the 1992-93 budget. Reserve funds would probably be used to cover the remaining amount.

Among cuts already proposed are elimination of the Public Works Department, which would be merged with other departments; elimination of several positions, including that of assistant city manager, and an end of all financial support for special events in town.

Critics of the budget plan, however, say the city should have already acted on more of the recommendations made by the citizens’ committee.

“To hire a consultant for $10,000 to come up with $2 million more in cuts is really unnecessary, since the blue-ribbon committee has a portfolio of all the possible cuts,� resident Karoline Koester said.

Blue-ribbon committee member Jim Hill said there are plenty of ways the city could cut more funds, including eliminating more management positions and standardizing the city vehicle fleet.

“They have just taken a few small bites out of what’s been offered,� he said.

The council is slated to take final action on the budget plan Wednesday, although further action may be needed as the state works out its own budget, Parness said.

Legislators “have known they have had a budget crisis on their hands for eight months, but waited until after the primaries to even let us know what they’re considering,� Parness said.