MESA MAYOR SCOTT SMITH

When Scott Smith took the mayor’s office in July, he had a goodly amount of optimism about what he could accomplish. He had a new council to work with and, despite the city’s fiscal challenges, some real opportunities ranging from the Riverview/Waveyard region to what’s on the horizon for Phoenix-Mesa Gateway Airport. The new council quickly agreed to a scaled-down version of a bond package and new property tax before city voters on Nov. 4. And he announced several promising changes in the business climate to launch his administration including expansion of Catepiller dealer Southwest Empire and a new Gaylord luxury resort.

What Smith couldn’t count on what the nationwide freeze in the credit markets in mid-September that put an even bigger brake on the national economy. Combined with already struggling Arizona situation, government tax revenues are taking a nose dive at state and local levels.

So Mesa’s on-going budget problems are going to move the forefront again, and likely will shape whatever legacy that Smith will leave the city. Tribune East Valley editor Patti Epler reported today that Police Chief George Gascon and other city department heads are sounding huge red alarms about coming budget cuts, and Smith only stoked the fire with his comments.

“We’re trying to get everybody in the mindset of not only where can we cut, but how do we do business and what services do we provide and where do we go from here,” Smith said. “We may have to make some basic changes in how we approach things. We need to at least start thinking that way. We don’t want to be caught off guard.”

Epler wasn’t able to learn any details about how big the budget cuts might be. But we can get a sense of what’s going on from neighboring Phoenix, where the City Council could be forced to shrink the general operating budget by more than 20 percent — after already making smaller spending reductions earlier this year.

By this time in 2009, Mesa’s city government could look a lot different, and be a lot smaller, than it is now.