Councilmember Carl DeMaio released a memo today showing the major impact the new Downtown Library project will have on the city’s General Fund which faces a staggering $200 million deficit.
By shelving a new downtown library, the city could save as much as $63 million over the next five years, according to a fiscal analysis by City Councilman Carl DeMaio.
DeMaio, who is opposed to the project, issued a memo Monday to his council colleagues and Mayor Jerry Sanders that outlines how much the city would save if it abandons the project.
The goal of the memo is to refute assertions made by library supporters that the project won’t take funds from the city’s $1.1 billion general fund, which pays for daily operations such as fire, police and parks.
DeMaio says the city should redirect the $63 million in redevelopment funds set aside for the library to cover the annual costs of the city’s debt service on Petco Park and the Convention Center. That would free up money in the general fund to help solve the city’s projected budget deficit of $179 million for next year.
Those debt payments typically come from the city’s general fund although the Centre City Development Corp. has agreed to pay the ballpark payments for the next five years. After that, the city will again be on the hook.
DeMaio also said that by stopping now with the project the city could save an estimated $5.7 million in annual operating costs for the library once it opens. Library supporters say they will raise money to pay for operations for the first five years. DeMaio calls that “a risky assumption.”
“Funding currently slated for the downtown library project can either help solve this budget crisis or add to it,” DeMaio wrote. “I urge my colleagues to take into account the potential general fund savings that could be realized before proceeding forward.”
The council is expected to consider a $500,000 contract extension with the project’s designers and consultants next week. The money would go to seek bids from developers on the project, last estimated to cost $185 million.
Comments 1
Here is an article excerpt from the U-T:
Committee sends library plan to council for vote
By Craig Gustafson
UNION-TRIBUNE STAFF WRITER
2:00 a.m. October 15, 2009
“The new library in the East Village would be twice the size of the existing facility. The sixth and seventh floors would be used for a charter school serving about 400 students.
To fund the project, the library is relying on $80 million in city redevelopment funds, $20 million from the San Diego Unified School District and a $20 million state grant. The state grant is contingent on the city seeking bids on the project by Nov. 15.”
I don’t see any mention whatsoever about general fund cost here. I understand that DeMaio thinks that using $63 M in redevelopment money will save the City , but think his proposal is a bit shortsighted.
All three projects deserve to be done, but the one that benefits the community most directly is the library. But, priorities point more to a library for our community.
It is my understanding that DeMaio thinks that the redevelopment money could then free up general funds for the Ball Park and the convention center. But, how much and could the ball park and the convention center come up with private funding to match? The library already has community commitment and is ready to go.
He says that not going forward with the library now will save the City 5.7M. Does he know what it will cost the City to run the Ball Park and the Convention Center in comparison to the Library?