GARDEN GROVE : Budget Woes Loom, City Manager Says
A budget crunch could hit in the new fiscal year, the city manager has told the City Council.
City Manager George Tindall said tax revenues are below projections for the first half of 1989-90 and a much bigger gap between income and expenses could develop for 1990-91.
“About 40% of our budget is based on the economy,” principally sales taxes, Tindall said. Those were about $500,000 below projections because of a slowdown in retail sales, he said. “On the other hand, our expenses were down substantially because of a number of vacancies on our staff at this time.
The “problem, though, is that we have a trend,” he said. If tax revenues don’t increase, “we’ll have to make them (the vacancies) permanent. And that’s alarming.”
More ominous for the new fiscal year is an estimated $1.5 million in new costs and funding decreases from various federal and state agencies, Tindall said.
The 1990-91 budget will be brought to the council in May or June, Tindall said.
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