Willow Glen Resident

News

San Jose budget shows $18.2 million cut in bond projects

By Eli Segall

San Jose may be forced to scale back $18.2 million in neighborhood bond projects because of rising construction costs, according to Mayor Chuck Reed's 2007-08 proposed budget released June 1.

Since 2000, voters have approved $599 million worth of bonds, including a $212 million bond to rebuild San Jose libraries, a $228 million bond for upgrades to neighborhood parks and community centers and a $159 million to upgrade and add fire stations and emergency service equipment.

Since then, however, the cost of raw materials has soared. Steel has increased by more than 200 percent, concrete has jumped by roughly 150 percent and the cost of copper has gone up by nearly 400 percent, according to city figures.

As a result, the city is looking at ways to trim the scale of some projects.

Those being eyed for possible project reductions include the $6.6 million Calabazas Branch Library, scheduled to open in December 2009; the Happy Hollow Park and Zoo, which is scheduled to close for eight months in July 2008 for an overhaul; and the city's three new fire stations, including one planned for the Willow Glen-Cambrian area, though neither a construction timeline nor a location has been determined.

"Voters feel they're going to get what they voted for, and the city feels obligated to deliver what voters approved," said David Persselin, debt administrator for the San Jose Finance Department.

Persselin emphasized that the funding gap, which was first identified in a January memo from the city manager's office, is a worst-case scenario of shortfalls caused by building costs.

The city has already completed several bond projects funded by Measures O and P, including nine new or renovated libraries, 69 neighborhood parks and 13 fire station improvements.

Others have already been scaled back. Two years ago, eight planned libraries had 500 to 2,000 square feet shaved from their original designs. The planned reconstruction of the city's fire department training center was reduced to a handful of renovations, according to the January memo.

"Current project scopes have been adjusted to complete within available funding," the memo said. "However, [several programs] are at risk of requiring additional scope reduction or supplemental funding."

The San Jose City Council on May 22 approved the sale of $100 million worth of bonds previously approved for Measures P and O, approved in 2002. Roughly three-fourths of that sale is for public safety projects, and the rest is for parks.

Roughly $48 million remains to be authorized for the three bonds: $11.2 million for the 2000 Measure O, $28.9 million for Measure P, and $7.7 million for the 2002 Measure O.