The City Council approved about $4 million in fee increases last week to help close an estimated $60 million budget shortfall the city faces in the coming year. District 2 Councilmember Kevin Faulconer also joined colleagues April 20 in eliminating $1,000 in city service discounts for nonprofit groups that host special events such as holiday parades. At the same time, the City Council raised the cost private companies pay for extra police officers during those special events, from $75 to $96 per hour. The decision to raise special-event staff fees saves the city an estimated $500,000, according to city officials. Private security or volunteers could support police and public safety during special events, said Carolyn Wormser, director of special events for the city. Police department officials decide on a case-by-case basis how many officers may staff an event, she said. The council approved a slate of fee increases running the gamut of city services, including a $50 increase in business fees, a small increase in dump fees, additional late fees for library books and an added $1.06 to pay parking tickets online, according to city documents. Most of the fee increases will become effective July 1. The council also approved an annual $5 fee increase to maintain a newspaper rack effective in January. Speaking at a budget meeting in Ocean Beach, Mayor Jerry Sanders said other fee increases allow the city to recover costs of administering various programs. User fee increases to Park and Recreation Department programs, including youth sports, result in about $1.1 million in annual revenue, according to city documents. In addition, Sanders proposes tapping library improvement funds to close some of the budget gap. This puts some library improvement projects on hold until funding becomes available, he said. The library improvement fund contains about $4.5 million, Sanders said. “[The budget proposal] takes about $3.8 million of that, so we hope to replace it,” he said. Library improvement funds come mostly from Transient Occupancy Taxes (TOT) on hotel rooms. But reduced consumer spending because of the national and local economic recession means less TOT revenue to the general fund, according to city officials. Faulconer said holding off on capital and library improvements during tough economic times will keep recreation centers and libraries open. Sanders’ budget also keeps about 150 city positions vacant without the need for additional layoffs. Sanders also presented possible long-term budget solutions to close an estimated $1.3 billion in unfunded retiree healthcare costs that are to be paid over 20 years. He said negotiations with unions over the next two years should help restructure the health benefits program. “What we’ve talked about is a defined contribution system,” Sanders said. “[Employees would] put into a 401(k) account and [the city would] put into a 401 (k) account,” Sanders said. He added that employees nearing retirement be required to pay into a new program because they may not be able to afford it. Betty Peabody, a Point Loma resident, attended Sanders’ budget presentation in Ocean Beach. She said Sanders’ has brought the city along way from just a few years ago. “I think he’s doing the best job we can ask,” Peabody said.