Costa Mesa council votes to ensure capital improvements

The Costa Mesa City Council approved an ordinance this week that would ensure that city funds be used for capital improvements — like sidewalks and street repair — every year.

The law, known as Capital Asset Needs, or CAN, states that the city must spend 5% and set aside an additional 1.5% in a special savings account for capital projects. Passage depends on a second vote at the Sept. 15 council meeting.

The council split on the measure, with Mayor Steve Mensinger, Mayor Pro Tem Jim Righeimer and Gary Monahan in favor. Councilwomen Sandy Genis and Katrina Foley dissented.

Calling the law a first in Orange County, Mensinger said it would ensure that future councils invest in things like repairing roads and rebuilding decrepit fire stations.

It would avoid City Hall needing to ask for bonds or other measures to pay for such improvements, he added.

“Roads don’t fix themselves. Potholes don’t fix themselves,” Mensinger said. “I don’t think we should be looking to the taxpayers to pay for things that we should be reserving for as we go along.”

Genis countered that while the law was good in concept, she worried that it would put the city in a bind if it is required to spend money that it doesn’t have.

She said this decision could force the council to dip into emergency funds and reserves.

The allocations may be reviewed annually by the city’s Finance Advisory Committee.

During an economic downturn or disaster, a supermajority, meaning a 4-1 or 5-0 vote of the council, could override the rule and use the capital improvement money for unforeseen circumstances.

In the 2015-16 fiscal year budget, the council set aside $7.26 million toward capital improvements and its facilities account.

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Leinart fees

Nearly $25,000 in back payments owed to Costa Mesa City Hall by Matt Leinart Flag Football League, a business serving kids in kindergarten through the eighth grade, will go into the city’s general fund.

City officials recently discovered that the league had paid too little to rent fields at the Jack R. Hammett Sports Complex. To get a lower field-use rate, Leinart’s organization had improperly registered using its nonprofit foundation, not its for-profit business entity.

Foley had suggested that the nearly $25,000, which is being paid out in installments, get earmarked for something specific related to Costa Mesa and Estancia high school athletics, such as uniforms or equipment.

Her suggestion did not find enough support to win approval.