Bell Council Trims Budget to $9 Million
After months of trimming projected city expenses, the City Council has approved a $9-million budget for 1985-86.
About $700,000 was cut from maintenance expenses and administrative operating costs because of decreased revenues from the city’s largest revenue source, the California Bell Club, officials said.
In adopting the budget Monday, the City Council also agreed to allow $125,000--the expected shortfall--to be taken from city reserves, officials said. Bell has a reserve fund of about $3.5 million, said Financial Director Steve Klotszche.
“If you dip into your savings account to maintain your life style, eventually you’re going to run out of your savings account,” he said. “It’s just not a good idea to use that money for ongoing operations.”
The council also took final action Monday to waive the California Bell Club’s quarterly license fee, officials said. The move will result in a $36,000 loss in city revenue from fees that were to have been received in October, 1985, and January, 1986.
The gambling casino was on the verge of bankruptcy until new management took over in March, club officials said. They have said the break on fees would allow the club to improve its financial picture and eventually increase revenues to the city.
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