City Manager Warns of Higher Taxes, Layoffs : Budget: A $15-million deficit by the end of the fiscal year is possible if new austerity measures are not taken, he says.

The city’s financial troubles are taking their toll on local services, as city departments cut back on everything from library hours to dog-catching and recreation programs.

In remarks to the City Council this week, City Manager James C. Hankla sketched a gloomy picture of a city gripped by one of its worst budget crises in more than a decade. Having already asked for and received a 5% spending cut in December, Hankla warned that a utility-tax increase, more cuts and possibly even layoffs of city employees may be necessary to avert a deficit that could grow to $15 million by the end of the fiscal year this summer.

The Police Department is largely exempt from the cuts, but otherwise, the 5% reductions in the city’s $287-million general fund budget will be felt by a broad range of city services.

* The main public library downtown will close the first Sunday of each month; the Dana Branch Library will close every Monday; and the Los Altos Branch Library will close at 6 p.m. every Wednesday. Additionally, the library system’s purchase of new books and magazines will be slashed by 40%, or some $300,000.

* The Department of Parks and Recreation will cut back on hiring, curtailing a number of programs, including after-school and weekend sports programs in parks, senior citizens’ activities and restroom maintenance.

* The Health Department will cut back public health nursing services and leave two animal-control positions unfilled, reducing its investigation of cruelty complaints and leash-law violations, and cutting back its stray-animal patrols.

* Graffiti-removal efforts will be reduced.

* The grass on street medians will be mowed less frequently, and city trees won’t be trimmed as often.

Hankla, addressing the council in the first of two budget workshops, said a combination of factors has seriously eroded city income. Among them are lower-than-expected property and sales-tax revenues resulting from the recession, a drop in building fees stemming from a construction slowdown, new county charges for tax-collection services and declining interest on city investments.

“We can no longer continue as we have in the past,” Hankla remarked, as dozens of city department managers and employees listened in the audience.

With a hiring freeze already in effect, Hankla said that if permanent positions had to be cut, management would try to make them through attrition. But, he added, “We cannot rule out the possibility of layoffs.”

Moreover, he said, his management staff will not be given raises in the next fiscal year and city departments will be asked to reduce their spending by another 5% in the upcoming budget.

Hankla, arguing that Long Beach’s utility tax remains lower than other Southern California cities despite last year’s hike in the city levy, called for another increase--from 7% to 10%

“This problem did not just happen overnight,” Hankla continued, urging the council to take long-term steps to shore up the “fragile state of city finance” and pay for much-needed infrastructure improvements, such as street reconstruction and a new communications center for public safety.

He suggested that the council consider the creation of assessment districts to collect fees for such programs as street lighting or curb maintenance, that the city might sell a general obligation bond--which would require voter approval--and that other, unspecified user fees might be imposed.

Council members, due to meet again next Tuesday night for another budget session, did more listening than talking.

Councilman Warren Harwood repeated his objections to the 5% cuts, insisting that the council should go over the budget line-by-line, trimming as it sees fit.

Councilman Ray Grabinski complained that it would be unfair to again raise utility taxes--imposed on water, gas, electricity and telephone bills. Instead, he argued, the city should collect money owed it by some of its agencies, such as the airport and the Redevelopment Agency, and impose higher fees on port and airport users.