DeMaio: Shelving Downtown Library Will Save $63M in General Fund

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.