Modesto could sell three city properties to avoid budget cuts

3 sites might fetch $615,000; new fees among other options

By ADAM ASHTON
aashton@modbee.com

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Modesto plans to consider selling city property -- including a 1926 fire station -- to stave off sharp spending cuts, according to a preview of Mayor Jim Ridenour's 2008-09 budget proposal.

The city is preparing for a continuing decline in tax revenue, which could force across-the-board spending reductions of 3 percent to 10 percent. The higher number is about $12 million of the city's $120 million general fund, which pays for public safety, parks and other general services.

Boosting one-time revenues could lessen the demand for cuts, Acting City Manager Jim Niskanen said.

Properties targeted for sale include:

Fire Station No. 2, an 82-year-old building on Second Street. It's becoming expendable because the Fire Department plans to move a company from that station to a new one at nearby Marshall Park next month.

The site of the old John Muir schoolhouse on East Morris Avenue. The building burned down in October.

A recreation site at Coldwell and Virginia avenues.

The three properties combined could bring the city about $615,000, according to a summary Niskanen presented Monday to the council's Finance Committee.

Niskanen and Ridenour also are evaluating options to boost the city's ongoing revenue.

Some of those include:

Charging cable customers 75 cents a month to pay for educational programming currently subsidized by the general fund.

Requiring the Modesto Redevelopment Agency to refund some of the $21.5 million in start-up loans it accepted from the city's general fund.

Adopting a new business license fee.

Ridenour is expected to present his full budget plan within three weeks. It is scheduled for a full week of council hearings beginning May 17.

Mayor to play key role

The mayor has a central role in planning for the next fiscal year's budget because of a government reform measure voters approved in February. Measure M gave him more influence over the city's budget planning, but the city manager retains the final say over the city's administration.

Fire Station No. 2 is a city landmark, though Fire Chief Jim Miguel said it's unlikely a historical group would be able to preserve it after his department moves to the Neighborhood Center at Marshall Park. He said the land around the station is worth more than the building, and he plans to recommend that the city demolish it.

"That building will be a very attractive nuisance the longer it sits vacant," Miguel said. "It will be blighted property."

Bee staff writer Adam Ashton can be reached at aashton@modbee.com or 578-2366.