DONATING DEALERS TO BENEFIT FROM CITY SPENDING.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - Many of the car dealers that will benefit from the City Council's approval of a $30,000 campaign urging residents to buy a car from Valencia's Auto Row hosted a fund-raiser for Mayor Laurene Weste and Councilman Frank Ferry.

Weste and Ferry, seeking re-election next year, raised $10,000 each at the November soiree at the Hyatt Valencia, with a total of $2,000 coming from auto dealers.

The contributions - $1,125 to Weste and $875 for Ferry - were limited to $250 per person per election cycle and were reported in the candidates' year-end filings, released in February.

Ferry said the shop-local campaign, which could add as much as $5 million to the city's bottom line, will raise money to improve city services.

``The people expect this city to do a lot,'' Ferry said. ``And we need more money to make that happen.''

The Santa Clarita Valley Automobile Association will contribute $126,000 to the six-month advertising campaign.

Assistant City Manager Ken Pulskamp told the City Council that the shop-local campaign would target the 48 percent of residents who buy their cars outside the valley.

One percent of the state's 8 percent sales tax comes back to the city, adding $19.5 million to the city's general fund annually. Of that, $5 million is generated by car purchases.

``This is well-invested money,'' Councilman Bob Kellar said. ``The city will reap the benefits of this money many times over.''

While officials have asked that the next budget fund $37 million worth of projects, the city has just $3.5 million in discretionary funds in its 2002 budget, City Manager George Caravalho said.

Tuesday night's unanimous decision to fund the campaign was criticized by several residents, who encouraged the City Council to support a generic shop-local campaign that they said would benefit all Santa Clarita businesses.

``To single out one industry is not appropriate,'' said Berta Gonzalez Harper. ``Canyon Country businesses will not be helped by this.''

Pulskamp said the campaign would indirectly help all businesses by bringing tax dollars back to the Santa Clarita Valley.

Weste and Ferry have each reported raising about $10,000 - about a fourth of what City Council campaigns have cost in previous elections - according to the City Clerk's Office.

Jim Knox, the executive director of California Common Cause, a watchdoggroup, said it is common for money from businesses to dominate localelections.

``Money gets you access, and access is influence - and I don't think you can separate the two,'' Knox said.

Kellar and Councilman Cameron Smyth do not face re-election until 2004, while Councilwoman Jo Anne Darcy plans to retire when her term expires next year.