Pasadena OKs $264-Million Budget for ’91 : Finances: The Board of Directors voted yes despite warnings from the outgoing city manager that the city is living beyond its means.

The Board of Directors on Tuesday approved a $264-million operating budget over the objections of City Manager Donald McIntyre, who warned that the city is living beyond its means.

The budget for fiscal 1991, which includes new allocations for child care, the arts and a landmark district, represents a 6.4% increase over last year’s operating budget.

McIntyre, who was not present at Tuesday’s board meeting but who sent a written message, said that the city is fast approaching the so-called Gann limitation, which imposes restraints on budget increases and that it faces losses in sales-tax revenue because “the regional economy may be starting a downturn.”

The Gann limitation, from an initiative approved by the voters in 1979, ties budget growth to population and cost-of-living increases. It is named for the measure’s sponsor, the late Paul Gann.

McIntyre recommended that the board cut the budget by an additional $1 million.

“The city’s desire to serve the public has simply outstripped the resources available to accomplish its goals effectively,” McIntyre wrote.

The board nevertheless voted 6 to 1 to approve the entire budget, including the $121 million general city budget, over which the board has discretion. The remainder of the operating budget, over which the board has no discretion, goes for such items as water and power and garbage collection.

Director William Paparian cast the lone dissenting vote. He said he was concerned that the budget did not include money for seven new firefighters. He said he voted for last year’s budget only because of commitments from his colleagues that money for the additional firefighters would be allocated in the next two budgets.

“I felt it was unconscionable to take a budget decision from a year ago . . . and just set it aside, after so much careful thought and study,” Paparian said.

But others on the board said their commitment to bolster the Fire Department could be satisfied with a plan to add a fourth paramedic unit in January. Although the new budget does not include money for the seven-person unit, the board will consider the $252,000 measure as a special allocation within the next month.

The board also agreed to conduct a mid-year budget review in January. If anticipated revenues do not materialize, Mayor Jess Hughston said, “the budget can be changed by four members of the board.”

The board is scheduled to vote on the city’s proposed $94-million capital budget next week.

Saved from the chopping block by Tuesday’s action were three police officer positions for $198,000, a $60,000 arts program, $46,000 for the Bungalow Heaven Landmark District and $41,000 for an AIDS community task force.

Although they supported the budget, some of the directors expressed doubts about the city’s fiscal strategy.

“It’s shortsighted of us to be finding revenues under a rock, in some cases, in order to meet the demands for spending,” Director John Crowley said.

The budget identifies about $1 million in new revenues, including $50,000 for jail rental (mostly from misdemeanor offenders who choose to serve time in Pasadena rather than in county jails), parking fines of $150,000, warrant charges of $100,000 (for which the city bills the Los Angeles County district attorney) and adjustments of $476,000 for financial services the city provides to such independent agencies as the Department of Water and Power and Rose Bowl.

“I’m very pleased,” Finance Director Mary Bradley said of the vote. “It’s a consensus budget.”

She noted also that the board approved the budget three weeks ahead of schedule. The board acted quickly, she said, so that the new budget would be in place when new City Manager Philip Hawkey takes over on June 18.