Fargo tackles budget shortfall, climate change and flood control

After seven years as Sacramento's mayor, Heather Fargo faces a tough re-election challenge from a local celebrity: Kevin Johnson, former NBA star and a pioneer in Oak Park's redevelopment. Six other candidates are also on the city's June 3 primary ballot.

Fargo, 55, led the city through flush economic times as California's capital grew and prospered. Today, with the local real estate market in trouble, Sacramento City Hall faces a $58 million budget shortfall and the potential loss of hundreds of employees.

She answered questions Friday morning at the midtown office of her campaign consultant, Richie Ross.

Q: How could the city have gone from rolling in money to the current budget shortfall?

A: I'm not sure we were ever rolling in money – that's a distortion of where we were. Prior to this last year, our revenue was a little bit ahead of our expenditures, and during the good years we set money aside, which is how we got to the point of having $25 (million) or $35 million in reserve for economic uncertainty. We have spent down a little of that, but we still have $22 million we can put toward this current shortfall.

Q: Where else did the money go?

A: Of the large increases we saw during the good years, we put a lot of that money, frankly, into public safety. … And we did a lot of one-time expenditures that were important, that people wanted to see: additions to community centers, to public parks, new libraries, the new City Hall. So, no, I don't think the money was mismanaged.

Q: On flood control, what is the city doing about the federal redesignation that basically bars further development in Natomas until the levees are repaired?

A: We've just got to get this work done as soon as we can. Part of the message I want to give to both the state and federal agencies is this: If they're going to say that we are so unsafe, then when our application comes onto your desk, I want it at the top of the 'in' basket. If you get six months to review it and it's only going to take you 30 days, could you do it in the first 30 days instead of the last 30 days? Make us a priority.

Q: How do you do that?

A: Part of it is that we keep the pressure on. We let them know we're watching them.

Q: You talk about the city's role in climate change. What are some of the steps you've taken to address that?

A: We have an implementation plan with nine different areas we're looking at. One of the big ones is the energy-to-waste one: taking our waste stream and taking it through some kind of process to reduce it and use the energy produced to generate electricity. One of the smaller things: We just arranged for four electric motorcycles to come to Sacramento. We are the West Coast test case. Part of the reason we got them is because of my interest in being greener and the city's openness to testing them. We've got them for three months – we're paying a dollar for the opportunity, and it costs only a penny a mile to use them.

Q: A recent CSU, Sacramento, poll found your approval rating was about 36 percent. Did that surprise you?

A: I think that of any year I've been mayor, this is the year where people are probably the most worried about the world, about the country, about the city, about their own families and neighborhoods, their finances. So I think the level of optimism that we've enjoyed in the city for the last several years is probably not there. And, obviously, as the lightning rod for the city, that would include me.

Q: The rumor on the street is that there is a plan afoot that you would only serve part of your next term as mayor, and turn the reins over to Councilman Rob Fong. Reaction?

A: Huh? Probably in Rob's dreams. (Laughing.) That's not my plan. I hadn't heard that rumor. My plan is to serve out my term and do more good things for the city of Sacramento. And I do not have at this point any aspirations for what some people might call higher office. I don't think it gets any better than this. Interesting rumor, though.

Q: Were you surprised that Kevin Johnson decided to run?

A: Not after the last couple weeks.

Q: People have likened the mayor's race between you and Johnson to the Democratic presidential contest between Hillary Clinton and Barack Obama. Do you see any parallels?

A: Well, there are some obvious ones. I'm flattered to be compared to Hillary. I do support her – I think she's very solid and would be a great president.

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