ESCONDIDO: City Council struggling to finalize deep budget cuts

Council divided over money for lobbyist, local nonprofits

By DAVID GARRICK - Staff Writer | Wednesday, June 11, 2008 9:58 PM PDT

ESCONDIDO ---- Heated disagreements about whether the city should retain its federal lobbyist and provide money to the Escondido Charitable Foundation forced the City Council on Wednesday to postpone adopting an operating budget for the fiscal year that begins July 1.

Council members have called this year's budget negotiations the most difficult in many years, primarily because sharp decreases in sales tax and other revenue have required nearly $5 million in cuts to the city's roughly $86 million annual budget.

Council members have agreed on most of the major cuts, which include 7.5 percent reductions in all city services except police, fire and code compliance. But they could not agree Wednesday on the final cuts, eventually deciding to postpone adoption of a new budget until their meeting next Wednesday.

Complicating the negotiations is Councilman Sam Abed's refusal to adopt a budget that includes any deficit spending, while the other four members of the council have agreed that deficit spending of somewhere between $1.5 million and $2 million will be necessary during fiscal 2008-09.

Abed said it has been irresponsible of the city to let its reserve fund drop from $14 million to less than $8 million in less than two years. He said a deep recession could make the city regret not being more careful with its reserves.

The rest of the council has contended that the whole point of the reserves is to prevent drastic cuts during economic downturns.

Without Abed as a swing vote, the council remains essentially divided into two camps on the remaining budget issues.

Council members Marie Waldron and Ed Gallo do not want the city to retain its federal lobbyist, and they do not want to provide roughly $20,000 to the city's charitable foundation, which was established in January 2007.

Mayor Lori Holt Pfeiler and Councilman Dick Daniels want to retain the federal lobbyist, former Rep. Ron Packard, R-Carlsbad, if he agrees to lower his annual fee from $90,000 to $50,000. They also want to give the foundation $20,000 by eliminating funds for the city's Mounted Posse, Youth Commission, Community Chest and the Escondido Art Association.

Pfeiler said it would be shortsighted to cut the lobbyist because they typically bring cities significantly more money in grants and beneficial legislation than what they charge.

But Gallo and Waldron contend that the city's budget crisis requires such cuts to avoid slashing the police and fire departments. They also argue that the city can survive for one year without a lobbyist.

Daniels said the charitable foundation has been a remarkable success story, raising about $700,000 during its first year.

"It's just too valuable," said Daniels. "It puts money into the hands of other organizations."

But Gallo and Waldron said the $25,000 the city initially provided the foundation was described as "seed money," meaning more donations would not be required.

Waldron also said it was crazy to cut other programs "in the 11th hour" to pay for the foundation. She also dismissed a suggestion by Pfeiler that the city increase the deficit by about $60,000 to cover the issues in dispute.

"To me, it's a black-and-white issue because we just don't have the money," said Waldron. "I think we have to be the fiscal conservatives we said we were when we ran for office. This is where the rubber hits the road."

The council was able to reach consensus on retaining its state lobbyist for $30,000 and continuing to provide live streaming video of council meetings for $11,000.

The state lobbyist, Mike Arnold, agreed to lower his annual fee from $48,000 to $30,000. The money will come from the city's water fund, not its general fund, because Arnold will focus primarily this year on funding for improvements to the Lake Wohlford dam.

Council members rejected a proposal to cut the streaming video, contending that it is a crucial way for the city to communicate with residents.

The council also rejected pleas from local nonprofit groups to restore $68,000 for police during major events. The groups said they will be forced to cut entertainment or other features.

The events are Cruisin' Grand, which had been getting $31,200 in police services, the Christmas parade with $15,500, Independence Day with $11,000, First Night with $9,200 and Grape Day with $980.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

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Pre-Registration Comments[-]Go to Top

Escondeeter wrote on Jun 11, 2008 11:42 PM:The real issue here is whether it's better to have the decisions on how the taxpayer's money is to be spent made by those the taxpayers have elected to watch over it, or whether it should be handed over to a foundation that'll spend it any way it sees fit. A foundation that, by the way, represented that it was seeking one time only funding on a prior occasion.

I'd rather see the decision in the hands of my elected representatives. They'd already made their choices known and the people who relied on those decisions are going to be thrown under the bus if Sam gets his way.

To me, a guy who publicly announces that he's going to vote against the budget no matter what forfeits his right to demand changes in it. I think those who are actually going to vote for the budget should drag out Wednesday's staff report and pass it the way it was written.

Escondodo wrote on Jun 12, 2008 3:38 AM:It is interesting to watch local political games. I pay pretty close attention and remember that the money given to the charitable foundation was supposed to be 'seed money' to help get it started. It has now morphed. Private donors were expected to keep this going. A quick list of names tells the story of the intent of certain local politicians. Clever but not transparent.

Escondido could wrote on Jun 12, 2008 5:31 AM:cut expenses by closing the Center for the Arts (a white elephant)and not self sufficient. Charge large groups who use the local parks a fee (to pay for cleanup) Example: Jesmond Dene Park. Local schools could charge non resident tuition to help educate the illegals. Enforce the city codes with regard to parking, dumping, etc. with large fines. Cut the "fluff" from Government and retain only that which is for the safety of the residents.

I agree with Escondido could wrote on Jun 12, 2008 6:45 AM:Now is not the right time to give any money to the arts. People are losing jobs, gasoline prices will still continue to grow most likely weekly, food prices going up and up. Schools overcrowded, and they want to put money into the arts? How about I get the city a couple of those paintings purchased by wealthy people a few years ago, that left the buyers red faced when they learned the artist was a real monkey.

Marie-Anne wrote on Jun 12, 2008 6:48 AM:""The council also rejected pleas from local nonprofit groups to restore $68,000 for police during major events like Cruisin' Grand, which had been getting $31,200 in police services, the Christmas parade with $15,500, Independence Day with $11,000, First Night with $9,200 and Grape Day with $980.""

Lets see. Cut Cussing Grand back to the few months that it used to be, there aren't anymore Christmas parades because it rains occasionally in Escondido, 4th of July fireworks will soon be eliminated due to "safety concerns" also. That leaves First Night, which nobody goes to anyway, so problem solved!

Hang tough Sam wrote on Jun 12, 2008 7:03 AM:Force the cuts needed. If the economy keeps going like it is you will need those reserves down the road. Cut the Arts and let it make it or break it on it's own. Reduce salaries and benefits 10% across the board. Tell the unions to stuff it and anyone who doesn't like it take a hike. Review any City monies that go to illegal aliens and stop it immediately. The City needs to run like a business not a welfare state. We already have one of those.

Tooth wrote on Jun 12, 2008 7:20 AM:I want the world to know that Ron Packard pulled my wisdom teeth and though I might have looked like a chipmunk for a few days afterward, he did a darn good job.

What does it take wrote on Jun 12, 2008 8:22 AM:to get in the councils and mayors mind? We are all saving as we don't know what more is going to happen to our economy and here you fools rushing out to spend our money. No money on anything new or existing that doesn't benefit all of the citizens of Escondido!

To I agree with Arts... wrote on Jun 12, 2008 8:40 AM:If you and your friends want to financially support the arts, go ahead; do not force everyone to support your cause. It's absurd that Escondido even has a foundation. A charitable foundation is not a municipality. Philanthropy is good, but is an individual choice - not the job of government.

Sam is standing up wrote on Jun 12, 2008 8:42 AM:for fiscal responsibility. Anyone who's against that is probably worried about losing their welfare check and being forced to get a job.

The Order wrote on Jun 12, 2008 8:42 AM:Pfeiler and Daniels are propped up by COGG, a shadowy organization of Republican insiders. (GOGG = Conservative Order of Good Guys. 'Good Guys' was recently changed to 'Good Government' as women became more active in the Order). As a Congressman, Ron Packard received support from COGG. Pfeiler's and Daniel's use of taxpayer money to fund a COGG friendly lobbyist is one of the subtle ways political influence is secretly brokered in the north county.

Will the Real Sam Abed wrote on Jun 12, 2008 8:42 AM:stand up! Don't be fooled by his mantra about balanced budgets at the council meeting. He is working hard to make sure all his pet projects are included at the expense of the taxpayers. He voted to raise his own salary and fund his friend's priorities. He doesn't care one wit about the taxpayers.

Kudos Sam wrote on Jun 12, 2008 8:42 AM:I am not familiar with all of your positions, but I applaud what appears to be libertarian perspective. Forced Philanthropy is an oxymoron.

Hello Escondido Taxpayers wrote on Jun 12, 2008 9:32 AM:Why isn't this part-time Council eliminating the $45,000-plus annual flat car allowance it pays itself, regardless of how many miles members drive on the public's business? And please, I don't want to hear about the regional meetings you are required to attend. Everyone knows that those regional public agencies also pay a lucrative car allowance for attendance at meetings. Isn't this called double dipping? Why aren't the Mayor and Council members required to fill out expenses report forms showing their actual expenses, and submit receipts, before being reimbursed, just like the rest of the working world? And we haven't even begun to scratch the surface. Let's talk about the Mayor/Council salaries and the yearly automatic pay raise they vote themselves when they approve the budget. Was that eliminated this year?

A Step Further wrote on Jun 12, 2008 10:24 AM:I would say Escondido should go a step further than "escondido could" and sell the center for the arts. It obviously cannot compete with the Indian casinos for top notch entertainment and it is a money sucker. Every year the city shores up the budget and every year it loses money. It is time to cut our losses.

Good for you Sam wrote on Jun 12, 2008 11:01 AM:It was obvious that Mayor Pfieler was matipulating the agenda in her on-going disregard and complete lack of respect for money. She is the most liberal tax and spend representative ever elected to the Escondido City Council. To deficit spend in this economy is absolutely irresponsible. The voters need to support representatives who have fiscally sound principles and apply those principles at the dias and they need to rid themselves of people like Lori Holt Pfeiler.

Change the Art Center wrote on Jun 12, 2008 11:47 AM:into a strip club, it will have more customers than it has now.

Jaque wrote on Jun 12, 2008 1:12 PM:May Lori Holt Pfeiler be unseated in two years by Waldron? Even by Olga Diaz, or Sid Pena?? Gosh I hope so.

Bill wrote on Jun 12, 2008 2:07 PM:And please drop the hotel project....How many millions has the city for a hotel that will be a flop. The arts center does not attract the right venues to fill a hotel.

Foundation Member wrote on Jun 12, 2008 2:10 PM:It's unfortunate to see the Foundation caught in the middle of this. Seed money or not, every dollar from the City gets reinvested here in Escondido. We're blessed to have such a wide commitment to philanthropy here.

Irony wrote on Jun 12, 2008 2:13 PM:Funny how the "fiscal conservatives" are the same bunch that wasted 6-figures in legal fees a couple years ago on that stupid rental ordinance that got slapped down by the judge. How's that for fiscal responsibility?

hmmm wrote on Jun 12, 2008 2:40 PM:Good for you = Marie?

LisaP wrote on Jun 12, 2008 2:42 PM:If it were a strip club, I could get a job there and then it would add to the economic development goals of the City.

CHUMP CHANGE wrote on Jun 12, 2008 2:56 PM:The cuts the City Council are arguing about is chump change. The amounts are NOTHING compared to the MILLIONS, yes MILLIONS the City spends just to keep the Center for the Arts doors open (not including MANY MORE MILLIONS for debt payments.)

If everyone is supposed to feel the pain of budget cuts, I don't hear any squeeling from the Center folks?

Solution Guy wrote on Jun 12, 2008 3:27 PM:If we would stop over-paying city employees with high salaries and ridiculous benefit packages then there would be plenty of money.

Hey Irony wrote on Jun 12, 2008 3:40 PM:If that would have passed we would be in good shape now. Millions wouldn't be spent on illegals. Also the schools would be in good shape. Waste of money? Only those that think it is OK for illegal immigration, sucking off the hard working tax payer think it is a waste.

To Chump wrote on Jun 12, 2008 5:40 PM:You don't hear the folks at the arts center squealing because they got their million plus subsidy early from the city council so they could pay their mounting bills because of very poor cash flow due to the horrendous deficit caused by their poor selection of shows. They had to stop the collection calls from all of the vendors who have been waiting to be paid. Who was able to get paid on time? The top paid administrators who once again put that place in the mess it's in.

DEFICIT SPENDING wrote on Jun 12, 2008 5:44 PM:It's real easy for Pfeiler, Gallo, Waldron and Daniels to spend $2 million dollars more than they have. They will simply swipe the taxpayer credit card and be done with it. It's not their problem anymore. It's now the problem for the taxpayers and ratepayers of the City of Escondido.

There is plenty of waste and indiscretion in this proposed budget. Pfeiler, Gallo, Waldron and Daniels need to pull their heads out of the trough and take a good look. And yes, this means reexaming their plan to give $21 MILLION dollars of taxpayer money to an out-of-town developer who, by receipt this geneous bequest, has no market-place risk at all; and, yes, it also means asking the Center for the Arts to submit a budget that reflects a 7.5 percent reduction just like every other city department. The budget shell game the CCAE plays year-after-year is notorious and enabled by this council. As for the Escondido Foundation, an affiliate of The San Diego Foundation; the council has no business giving taxpayer dollars to this organization.

If you actually watched wrote on Jun 12, 2008 5:57 PM:the council meeting you would see it was actually WALDRON and GALLO who stood with the taxpayers and made the drastic cuts. Waldron and Gallo served on the subcommittee that slashed $10 million from the original budget. They do not want to take more money from reserves like the Mayor and Daniels do. Abed wants to give $25000 to the charitable foundation because he is running for re-election now, while the city has cut public safety and kids programs. Abed can't see that there is no money available, but he wants to push it anyway.

to Foundation Members wrote on Jun 12, 2008 5:58 PM:Taxation to subsidize is NOT philanthropy. It's embarrassing to have to point that out to seemingly literate citizens.

CONSERVE E and HO wrote on Jun 12, 2008 6:08 PM:Escondido could save a substantial amount if they quit trying to grow disneyfied golf course medians in this desert and/or turn off at least every other street light, even if only twice a week.

To Deficit Spending wrote on Jun 12, 2008 8:16 PM:Get your facts straight. I notice you left Abed out of the criticism. He talks a good game, but his actions speak way louder. He has supported adding alot of cost overruns to the budget, including his obstenance at supporting adding $25,000 for the Escondido Foundation, and another $60,000 for a Federal Lobbyist.
Gallo and Waldron are in favor of not using any more reserves and saving for the future. They are not looking at putting the city into further debt as Abed, Pfeiler and Daniels are aiming to do.

Lisa to City Council wrote on Jun 12, 2008 9:02 PM:Hey City Council - Great Job not wasting the time of city staff. Great job cutting all those commissions & boards to save valuable staff time...so you could use up that valuable time with your inability to effectively govern!!! And BTW...just because you say you are "fiscally conservative" doesn't make it so!!! Can you all say "Downtown Marriott Hotel Project"? Can you all say "Slapped Down Rental Ban"? Can you all say "Wasted $49,000 parking study"? Can our City Council say: HEY CITIZENS: We won't take our pay raise this year!! And we will drop our outrageous and excessive gas allowance ($9,000 yr/each) that would require us to drive 18,000 miles a year to justify that allowance. And we will forfeit our pay for the commissions we sit on (that the city pays for and we appoint ourselves to)? I SAY to the City Council: Forfeit your pay raises & Forfeit your gas allowance - you have taken enough from the city's services & citizens!!!! You all have said that everyone will have to sacrifice during these economic hard times...Did you mean - "everyone, BUT you five council members"?

jon wrote on Jun 16, 2008 6:25 AM:Escondido could make a ton of revenue if they just stationed more police radar units on Grand, Mission and Valley parkway. Those streets have become 50 mph zones . More traffic cameras wouldn't hurt either .More revenue can be generated if the cops put up a couple roving safety checkpoints around town ,Checking licenses, registration and insurance requirements. Think of all the mini vans they could impound for resale and scrap alone. Ill bet this could generate another 10 grand a day if the cops just enforced the speed limits in this town. Of course this post could be construed as racist because it speaks of enforcing the law.

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