PARKS, ROADS IN BUDGET.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - The city will spend millions of dollars over the next year to build roads, parks and to preserve open space.

The Santa Clarita City Council adopted a $129 million budget Tuesday night for the 2001-02 fiscal year, but not before yet another conflict between Mayor Laurene Weste and the city staff.

Weste said the staff had erred in putting just $1.5 million in a fund reserved for the purchase and preservation of open space, including a controversial 38-acre parcel next to the city's Sports Complex. Weste said that fund should total $4 million.

``I don't think we were unclear,'' Weste said. ``I think it was an error. I am not unclear. I have my notes.''

But Weste withdrew her objection after Councilmen Cameron Smyth and Frank Ferry said the draft budget prepared by the staff reflected their recollection of the most recent budget negotiations - and the intent of the council. If a deal is reached with the owners of the hilly property next to the Sports Complex to buy the 38 acres, the council agreed to use $2.5 million now earmarked for Golden Valley Road. The proposed park acreage is owned by employees of Larry Rasmussen, a prominent Canyon Country business park developer who loaned them the money to buy it.

Purchase negotiations are ongoing, city officials said. Bob Allen, one of the owners, has offered to sell the land to the city for $6.5 million.

The council endorsed a plan to consider borrowing money from the state infrastructure bank to complete and improve those sections of Golden Valley Road and make up the difference.

Resident Cam Noltemeyer objected, saying the council's plan to shift funds to buy the parkland was intended to mislead the public.

``Stop the act, Mayor Weste. Be honest with the community, and say what you mean,'' said Noltemeyer, a frequent critic of the council. ``Stop the smoke and mirrors. This borders on the gift of public funds.''

The council stopped the budget debate to respond to Noltemeyer's statement.

``A button has been pushed here,'' said Councilman Bob Kellar. ``This council has worked hard with sharp pencils to maximize benefits to this community.''

The City Council faced several hard choices in compiling this year's budget, which was pinched by rising energy costs and a slowing economy. Many community organizations' requests for funding had to be rejected, frustrating the council.

``George, print more money,'' Weste joked, prompting laughter from the audience and a smile from Caravalho.

The approval of the budget is the culmination of five months of meetings and study sessions that saw the council members play an active role in shaping the voluminous document for the first time in the city's history. Those meetings were punctuated with conflicts between the council members and city staff members.

Weste was often frustrated by the what she said was insufficient information provided to the City Council by Caravalho and a failure to follow their direction.

In turn, the city manager repeatedly urged the City Council to tackle one major project at a time, advice the five council members have disregarded.

``We have to learn to say no,'' Caravalho said, echoing that theme. ``We need to send the signal that the printing press is broken.''

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Graph:

SANTA CLARITA'S BUDGET

Here is a breakdown of the city's reve nue and expenditure.

SOURCE: City of Santa Clarita