ENCINITAS – Financial consultants last night confirmed the City Council's worst fears over the coming year's tight capital budget: There is no easy way out.
City Finance Manager Jay Lembach indicated in a report that delaying three priority projects – three replacement fire stations, a central public works yard and the first phase of a 43-acre public park – eventually would cost the city millions of dollars more each year they are delayed because of rising construction costs.
The proposed budget falls $23 million short of estimates for those projects.
If the council decides to issue bonds to cover the shortfall, Encinitas would be able to build the facilities and pay $7.3 million less than what they would have to pay if they delay the projects, Lembach said. The city would pay $1.4 million each year in interest for 30 years.
Council members had not begun deliberating the budget at press time.
Activist Matt Walker criticized the council for developing a capital budget without a comprehensive plan, which includes moving money from other capital projects to pay for a new $20 million library at Cornish Drive behind City Hall.
“You spent it all on the library. Now you do not have enough money for fire stations, the public works yard, things we need,” Walker said. “Leaving yourself in that kind of lurch is not a plan.”
The City Council has to make some tough choices in its capital budget because escalating construction costs have doubled the price of some proposed facilities.
The council has whittled down its list of capital projects to four priorities.
The first is the library, which is under construction and expected to be completed next summer.
The other projects are:
Three replacement fire stations estimated at $12 million.
The first phase of a 43-acre city park west of Interstate 5 and south of Santa Fe Drive estimated at $19 million.
A $9.3 million public works yard to replace facilities now scattered around the city. The estimated cost does not include buying land because the council has not decided on a location.
Last night, the City Council also scrutinized city staffing to see whether any positions could be cut.
Finance Manager Darlene Hill said the city's staff grew by about 44 people in the past decade at a rate of 2.4 percent each year. The growth brought the number of city employees from 193 people in fiscal year 1996-97 to 236 this fiscal year.
Hill said the increase was in response to the needs of Encinitas' growing population, which jumped from 55,800 in 1990 to 62,800 this year, according to San Diego Association of Government statistics.
The City Council is expected to adopt its new budget June 14.
Angela Lau: (760) 476-8240; angela.lau@uniontrib.com
