BUENA PARK : City Budget Includes $1-Million Deficit

The City Council last week approved a 1990-91 budget, but managed to balance it only by dipping into its reserves for more than $1 million.

“This city is headed for some tight times,” said Mayor Donald L. Bone at Monday night’s council meeting. “The council is looking at and studying many measures.”

The approved budget calls for expenditures of $39 million, with expected revenue of $38 million. The deficit may be made up by taking that amount from the city’s reserve fund, reducing it to $3 million.

Salary increases are partly responsible for the budget crunch. Salaries went up by more than $1.2 million over last year as a result of the current labor contract.

The $39 million in expenditures is a slight increase over what City Manager Kevin O’Rourke proposed earlier this month.

The council decided to spend an additional $115,000, including a $13,258 salary increase for O’Rourke, bringing his pay to more than $93,000 a year, Finance Director Brian Mayhew said. City Clerk Alcene M. Cain received a raise of $7,775, and the council set aside $62,800 for the citywide strategic planning process that begins this month.

To make up the shortfall, several revenue producing projects are being considered. One is a paramedic subscription fee that would require residents to pay a flat rate each year for paramedic services. If a resident chooses not to subscribe, he or she will be billed “per use.” Another fee under consideration would increase monthly telephone bills.