This story was reported for San Diego News Network on September 15, 2009. It was reported by Hoa Quach and City News Service’s Joe Britton.
The city will proceed with expanding the San Diego Convention Center, replacing City Hall and building a new Central Library despite the tough economic times, Mayor Jerry Sanders said Tuesday.
“As we look for ways to protect our general fund and the city services it provides, we cannot allow our judgment to be clouded by the defeatists who think the only response to a weak economy is to abandon our aspirations,” Sanders told the San Diego County Taxpayers Association.
Sanders pledged, however, that he won’t support moving ahead with the projects if it requires the use of any money from the city’s general fund.
“During this time of economic hardship, I would never ask residents to choose between funding basic services and investing in discretionary capital projects,” Sanders said.
Sanders’ luncheon speech was touted by the mayor’s office as a “major address,” but delivered little substantially new.
At the start of his speech at the Town and Country Resort and Convention Center, Sanders heralded the city’s progress in implementing cost-cutting measures and departmental streamlining.
“Our financial reforms changed the culture of some departments, but they’ve restored our good standing on Wall Street, and won back the respect of
the investment community,” he said.
Since taking office in 2005, Sanders has trimmed nearly 900 positions from the city’s payroll.
The mayor also praised San Diego’s ability to overcome a $83 million deficit this fiscal year, the overhaul of the city’s pension system for new hires and the installation of a new citywide information technology system, which has suffered huge cost overruns and long delays.
The mayor chided the failure to implement the managed competition program, which was approved by voters three years ago to permit the outsourcing
of certain municipal services.
“The city continues to negotiate with labor organizations on an implementation guide, and we hope to soon secure council approval to begin a free-market competition through open bidding,” he said.
Sanders said the city is looking for ways to improve its returns at municipally owned Qualcomm Stadium, which costs San Diego about $12 million a year to run. And he suggested allowing San Diego State University to expand its campus by building research facilities at the Mission Valley stadium.
“Such an arrangement would help us with our ongoing budget problems and help San Diego State fulfil its important education mission,” Sanders said.
Sanders cautioned that the city’s financial burdens are not over.
He said San Diego’s budget deficit next fiscal year is expected to “dwarf all of its predecessors.” The mayor also said the city’s annual required contribution into the pension system, which has suffered huge investment losses over the past year, will be the largest in San Diego’s history.
“There has been considerable speculation about what the size of that payment will be, but whatever the amount, let me be clear: We will make our full pension payment, to the penny,” Sanders pledged.
Sanders concluded his speech by expressing resolve to overcome the city’s problems through the cooperation of the City Council and San Diegans.
“This economic downturn will pass soon enough, and we cannot let it define this time in our city’s history,” he said.
But his attempt to rally support resulted in a light-hearted speech with no real substance, Councilmember Carl DeMaio said.
“We need real reform and we didn’t hear him talk about it,” he said.
Steve Francis, a local businessman and Sanders’ chief opponent for mayor in 2008, said Sanders’ speech was self-serving.
“Rather than talk about what you did, the question should be ‘Are we better off than we were in 2005?’ The answer is ‘No, we are not financially better off.'”
He said “taking care of accounting issues is easy; it’s offering the leadership to the city that’s hard.” And Francis believed Sanders’ speech lacked guidelines to move forward.
Francis also criticized Sanders for his remarks about the state “taking” money from the city but not elaborating on how the city will deal with the setback.
“The mayor basically warned us of a fiscal tsunami but didn’t lay out the evacuation plan,” Francis said. “Instead he talked about building structures.”
DeMaio, who represents District 5, agreed with Francis – that Sanders’ speech left questions unanswered.
“I thought it touched on a number of points that I think everyone can agree with but there were issues I wanted him to elaborate on,” said DeMaio, who has been known to thoroughly evaluate the city’s finances and spending habits.
DeMaio said he wanted Sanders to discuss the pension system more, which San Diego City Employees’ Retirement System (SDCERS) board will decide whether or not to underfund on Friday.
“The city’s finances is the single most pressing issue,” DeMaio said. “We’re talking about a new civic center, expansion of the convention center without addressing the pension system. That’s not sustainable; that’s a crisis.”
Sanders, who spoke heavily about the possible new buildings, may have predicted criticism of his speech. He told attendees: “No discussion of a city building would be complete without a few obligatory comparisons to the Taj Mahal. For years, that kind of rhetoric has been enough to stifle any thoughtful conversation about replacing City Hall.”
Despite his comment, DeMaio said the mayor wouldn’t be judged by the number of new structures he creates in San Diego.
“The emphasis was on buildings – buildings don’t create a legacy,” DeMaio said. “The public wants to hear that the city is financially healthy. San Diegans want to see their government get the job done.”
Regardless of whether Sanders will get the job done, he told attendees he isn’t “afraid of the hard work.”
Joe Britton writes for City News Service. Hoa Quach is the SDNN political editor.