BUENA PARK : City Faces $1-Million Budget Shortfall

According to the recently released preliminary budget, the city is facing a deficit of nearly $1 million for the 1990-91 budget year.

Director of finance Brian Mayhew blames much of Buena Park’s financial woes on the lack of land left to develop. The tax revenue from new construction is no longer available, so the city must come up with alternative revenue sources, he said.

During budget talks last year, the City Council was also faced with a shortfall of about $1 million. However, the money was recovered during the year through increased revenue, Mayhew said.

The proposed budget shows expenditures of $31 million and revenue of $30.3 million. If the budget is approved by the council, the $970,000 deficit will be taken from the city’s reserve fund.

Also, residents may be called on to make up a portion of the shortfall if the council adopts new “user fees.” One is a paramedic assessment fee, which would require residents to pay a flat rate each year for paramedic services. Another would assess residents a monthly fee for telephone service, based on their bill.

Funding for the city’s seven departments is frozen at near-1989 levels. “We are allowing very little room for growth,” said City Manager Kevin O’Rourke. Operating expenses for the current year are $27.2 million, while the proposed budget shows expenditures of $28 million.

More than $1.6 million in requests for new programs, staff and equipment were submitted. But only 11 of 29 requests were recommended for funding.

Some of the programs that were funded include computerization of the Police Department dispatching system, an annual Cinco de Mayo celebration and hiring a crime analyst for the Police Department. Thirteen other requests have been put on hold until January when the city may have more money, O’Rourke said.

The council is scheduled to adopt the budget June 18.