COUNCIL SEEKS WAY TO FUND PARK PLAN.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - The Santa Clarita City Council scoured next year's budget Tuesday, searching for areas to cut in order to reduce a proposed loan and purchase more parkland and open space.

The City Council has been struggling to decide which programs to fund in this year's $127 million budget, which has been pinched by rising energy costs, a slowing economy and flat revenues.

``These are very important opportunities for this community,'' said Councilman Bob Kellar. ``I know I'd like to have my cake and eat it too.''

The City Council balked at a plan to borrow $6.5 million from the state for the planned Aquatics Center, improvements to Golden Valley Road, Scherzinger Lane, Haskell Canyon Road and to buy open space. That loan will cost $500,000 a year, officials said.

``Anything we can do to reduce that amount should be done,'' said Councilman Cameron Smyth.

The council members highlighted $1.985 million that they plan to reallocate from the Via Princessa road construction fun, the Whiney Canyon improvement fund and a monies freed up by a grant for another Los Angeles Sheriff's County Department deputy for the city's junior high schools.

The council is looking for at least $6.5 million, which would be necessary to purchase 38 acres next to the city's planned aquatics center.

``The sports complex's charm would be lost if that area was covered with asphalt,'' Mayor Laurene Weste said.

But City Manager George Caravalho warned that a slowing economy could make the purchase very risky.

``We don't want to bankrupt the ship,'' said Councilwoman Jo Anne Darcy.

Caravalho's proposed budget would use $3.5 million of unallocated funds for road maintenance, a parking lot in downtown Newhall, additional sheriff's deputies for junior high schools, the Aquatics Center, to preserve open space and to hire architectural design consultants.

The budget includes plans to spend $48.9 million on capital improvement projects such as the construction of Golden Valley Road from the Antelope Valley (14) Freeway to Newhall Ranch Road, which will eventually connect to the Golden State (5) Freeway.

Commitments to the planned Aquatics Center and the College of the Canyons' planned Performing Arts Center along with annual road maintenance and matching funds for state grants account for $11.7 million of the budget.

New money budgeted this year total $103 million, down from $115 million last year. While sales and property taxes are up slightly this year, building fees are expected to drop by about $1 million as the pace of construction cools along with the economy.