ORANGE : City Freezes Hiring in Face of Shortfall

Citing a $3.7-million shortfall in projected revenues, the City Council approved a hiring freeze for all departments and other budget adjustments this week. The freeze will affect 43 new staff positions included in the 1990-91 budget and will save the city nearly $1 million.

In addition, the city will transfer about $2.7 million to the general operating budget--about $367,000 from carry-over funds and $2.4 million from the capital improvement budget.

Assistant City Manager Jim Evans said the goal of the plan is to balance this year’s budget while maintaining service and staffing at current levels. Evans said the plan ensures that all capital improvement projects will proceed as scheduled.

“The public will not see any change in service based on these changes,” Evans said.

The original $80.5-million 1990-91 budget projected a 16% growth in revenue over the last fiscal year. But the unexpected economic downturn has resulted in a reduction in fees paid by developers and a 9% decrease in sales revenues in the second quarter of the year, Evans said.

Evans said the budget will be re-evaluated in March after the holiday sales tax revenues have been calculated.

While other measures may be necessary to keep the budget balanced, Evans said, Orange may weather the economic storm better than neighboring cities.