SAN DIEGO, Cal.─Presenting an overview of the problems he feels San Diego has overcome and those the future holds, Mayor Jerry Sanders gave his annual State of the City Address at Balboa Theatre in Downtown San Diego on Thursday, Jan. 10.
Sanders took office Dec. 5, 2005 in the wake of departing officials who are alleged to have committed one of the largest pension frauds in American history, and handed over responsibility for a city that the press had dubbed "Enron by the Sea."
"The era of decay and neglect is at an end"
Sanders began his speech by comparing the state of the City to that of Balboa Theatre. "The work done on this building is a fitting metaphor for San Diego. Like this great theater, our city had fallen into despair because of neglect and short-sighted decisions," said Sanders. "We've come a long way in the last two years in San Diego, and tonight, the state of our city is this: The era of decay and neglect is at an end."
Although Sanders pointed out some of the problems the City still faces, his speech focused on some of the major accomplishments he feels the city government has achieved. The mayor said that two years ago it was unknown how many city employees were on payroll. According to Sanders, "We accounted for the hundreds of staff positions not previously accounted for and permanently eliminated 670 positions."
The mayor mentioned that for three years the City had no certified financial audits and no viable plan to finance what he said were much-needed improvements to the city infrastructure. He said that now the City has three completed audits, and he expects the City to return to the public capital market in coming months.
Touching on the investigations the San Diego city government has had to face, Sanders said, "Two years ago the federal Securities and Exchange Commission (SEC) was investigating the City for securities violations, and we were in the midst of the Kroll investigation into the City's financial controls." Sanders continued, "Today, we have a settlement with the SEC. the Kroll investigation has been completed and the City is well on its way to implementing an entirely new set of financial controls to ensure that the problems of the past will never happen again."
"Over the next several weeks and months, I will lay out my plans to continue this agenda for change. And to those who doubt our resolve or our purpose, let me make it perfectly clear--I am committed to a path that will do no less than to restore pride in city government and earn your trust once again," said Sanders.
The mayor said that among the biggest issues San Diego faces, financial stability is the most pressing, and asserted that it remains his top priority. Sanders said his reforms are currently saving the City $50 million per year, but to further improve the City's fiscal outlook he has proposed a number of different plans. Briefly mentioned was changing the City Charter so as to provide a higher level of accountability to residents, as well as the formation of an independent audit committee, and an internal auditor to oversee the City's financial reporting.
Regarding the City's pension plan, which continues to figure as a major issue in San Diego politics, Sanders said, "When I first became mayor, I relied on the advice of the City Attorney that previously awarded pension benefits could be taken away. I supported his litigation efforts to reverse these benefits. The courts have ruled decisively against the City Attorney … I respect the courts' determination and feel that to act in disregard of these decisions would be unlawful."
On the issue of City employee pension healthcare systems, Sanders said that he would pursue major changes. He conceded that not all of his proposals are likely to be welcomed by union representatives. One plan is for a new pension system for new employees who are not sworn members of the police and fire departments.
Sanders went on to speak about the state of the regional economy. The mayor announced that he will be co-chairing the San Diego Regional Economic Development Corporation's Partnership for the Global Economy, which he said will focus on ensuring an educated workforce, building modern infrastructure, and attracting and nurturing new industries.
He said his plans for economic development would require a higher level of cooperation with Mexico. Sanders said, "I believe our economy will be helped by the expansion and creation of new ports of entry with Mexico. The expansion of San Ysidro, the busiest land port in the world, and the construction of a new commercial port of entry will ease the congestion that now impedes commerce between our two nations. We have already secured over $100 million from the state government toward this effort."
In response to the recent wildfires Sanders expressed gratitude to the firefighters, police force, and others who were involved in helping. "I have never been prouder of our city employees than I was during the wildfires," said Sanders, "One of the reasons our region responded so well was that for the first time in years, government leaders worked together seamlessly."
The mayor announced the formation of a multi-jurisdictional working committee, which will find areas that are in need of attention and look into all options for funding. The new committee will be co-chaired by Sanders and Sand Diego County Board of Supervisors Chairman Ron Roberts.
Sanders discussed a growing water crisis for San Diego, brought about in part by a recent federal court decision to protect an endangered species of fish in the Sacramento River Delta that will reduce the City's water supply by 12%. He said, "We need to remember that every drop we save this year will be a drop available in the year ahead should dry conditions persist. The time to conserve water is now. It is the responsibility of every San Diegan."
Expressing his belief that many of the difficulties are now past, with some hurdles left for the City to overcome, he closed his speech on a high note. "I was moved to run for Mayor because I could not stand on the sidelines and watch San Diego fall further into despair," said Sanders. "Two years ago, many said the only way out of our financial crisis was to declare bankruptcy. Look how far we have come since then."
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