FILLMORE : City Plans Balanced Budget for 1990-91

Fillmore is in the final phases of developing its first balanced budget in five years, Finance Director Mark Ryan said. He expects the $17-million budget for 1990-91 to be ready for adoption by the City Council on June 26.

Although Fillmore has had an operating deficit in the last seven of eight years, Ryan characterized the city’s finances as healthy.

“Collectively, we’re stable, but there are some areas of concern, particularly the general fund,” he said. For example, the general fund has only $200,000 in reserves, about half of what he said he considers an acceptable cushion.

To meet its balanced budget, Ryan said, the city will have to trim money for basic supplies and implement a hiring freeze on new positions. Travel and seminars have been eliminated for all staff; however, some travel expenses have been budgeted for council members.

He said the city was close to a balanced budget last year, but large expenditures such as $135,000 for a firetruck pushed the city into the red. He blamed the addition of two new positions in the city’s overburdened Planning Department as stretching last year’s budget beyond the limit.

The 1990-91 budget has $13 million allocated for capital improvements, including $2.8 million for development of an industrial park, and $1.7 million to acquire land for recreational parks.

About $3 million is proposed to be spent on improvements to the city’s water system, including water filters on two wells and the construction of a third reservoir. The budget includes road repairs and low-interest loans for homeowners to spruce up their neighborhoods.

Property taxes, sales taxes and various fees contribute to the general fund, which finances most of the staff’s salaries and administration. But Fillmore does poorly in its revenues from retail sales taxes, Ryan said.

He said improvements to California 126 will encourage commercial development that should boost retail tax revenues.