LOS ALAMITOS : Council Worried by Reserve-Fund Drop

The City Council approved a $6.1-million budget for the 1990-91 fiscal year, but council members expressed concern about the extent to which the city is dipping into its reserve fund.

The reserve base stood at $1.8 million last year but has since dwindled to $1.3 million.

“We must be very prudent with that reserve fund (in the future),” said Councilman Anthony R. Selvaggi. “A city with as small a budget as we have cannot afford to rely so heavily on reserves.”

A lack of major new development and a struggling economy is keeping the city from building up its reserve base, City Manager Robert C. Dunek said.

Though revenues are expected to increase slightly in the coming fiscal year, they are not likely to keep pace with inflation, he said.

Because of this, spending for most areas--including the Police Department, recreation and community services, and capital improvements--will have to be scaled back, Dunek said.

For example, the city cannot afford to buy new police cars this year, Councilman Charles E. Sylvia said.

“The belt-tightening is evident,” Sylvia said. “We are even asking our officers to make do with some emergency vehicles that in other years would have been replaced.”

The City Council was also apologetic that several social service and charity organizations would not be receiving any money this year.

Representatives of Laurel Park Manor, a senior citizen housing facility now under construction, and Casa Youth Shelter were told that their requests for $5,000 and $4,000 were being denied.