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No Budget For San Bernardino Wednesday, 01 July 2009 By BVN Staff Don't break out the "honeymoon is over" refrain just yet, but new San Bernardino City Manager Charles McNeely got his first pushback Monday.

The City Council voted unanimously Monday night to delay approval of his proposed budget for the upcoming fiscal year after city attorney James F.

Penman questioned the legality of helping to close the deficit by borrowing $5.4 million from the city's Economic Development Agency.

The council adopted a continuing resolution, which maintains spending levels provided for the 2009 budget.

The next fiscal year began Wednesday.

The council has met four times, including Monday to discuss the budget.

"With Mr.

McNeely on board, I was hoping we could pass an on time budget for the first time in a long time," said Councilman Rikke Van Johnson.

He added that clarification on state law is important.

Penman said in a budget workshop Monday that his office needs more time to review whether McNeely's proposal to borrow money from EDA complies with state law.

Penman sought the delay after receiving information urging caution that there is a possibility that EDA funds might not have always been used properly in years past.

McNeely said following Monday's meeting that Monday was the first time he learnedthat Penman had legal questions regarding the budget.

He said he did not see the proposals as being out of the ordinary realm of city finances.

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