Power Plant in City Budget

The City Council OKs a spending plan that includes a new electrical facility.
By Doug Haberman
Published June 25, 2003
Reprinted with permission from The Press-Enterprise

A new $55 million power plant near Riverside Municipal Airport meant to generate electricity on summer's hottest days is among the key features of a $565.9 million budget the City Council unanimously approved Tuesday.

The 2003-2004 spending plan also includes $8 million for new computer systems to help the city improve efficiency and customer service, $250,000 to help relieve traffic congestion in the Orangecrest-Mission Grove area, and $100,000 for preliminary planning and design for an Orangecrest branch library.

A new police station in La Sierra and development of a 20-acre sports practice field are in the budget as well.

The previous estimated budget was $565.7 million, but during the budget-writing process, the council decided to add two positions to its own staff - an intergovernmental relations officer and an administrative assistant. Together their salaries and benefits will total roughly $200,000.

No member of the public addressed the council about the budget and none of the council members commented on it before the vote.

City spending is expected to rise by 11.3 percent over the current fiscal year.

City Manager George Caravalho previously said the city is benefiting from a robust local economy and a habit of accumulating reserves in the past few years.

But rising employee pension costs will pinch the city's general fund, Caravalho said, and he has recommended delaying equipment purchases and other measures to confront the looming problem.

The general fund pays for most basic city services. At $148 million, it makes up 26 percent of the total budget.

More than 62 percent of the general fund will go for police and fire protection while 11 percent is earmarked for parks and recreation.

The unresolved state budget crisis could affect the city's own budget but, if needed, the city can dip into a $22 million general fund contingency account, city budget director Jim Smith said in a phone interview before the council meeting.

"We're OK," he said.

If state cuts have a serious effect on the city's budget, it can look for ways to spend less money, Smith said.