BUENA PARK : City Staff Advises No Increase in Taxes

A recent report from the city staff recommends that more than 20 vacant positions be frozen to help close a $1.7-million budget shortfall, but adds that taxes need not be increased.

The city’s $30-million operating budget is up 4% over the previous year. Recession coupled with new expenses has created the gap, said Director of Finance Greg Beaubien.

“No one was predicting the recession to be as severe as it was,” Beaubien said. “We are making every effort to control costs and make cuts.”

“At this time we are not looking at any new taxes,” Beaubien said. “If we were (to raise taxes) it would be at a later time.”

Instead of taxes, however, the city is considering increases in various user fees. It is also planning to take money from the city’s reserve fund, leaving about $2.6 million in that account.

The staff vacancies are spread across six departments, including two police officer jobs and one fire captain spot. Several part-time jobs are also involved.

Savings from the freeze are estimated to be about $586,000.

Along with the hiring freeze, city officials recommended that all departments be funded at the same or lower levels as the previous year. And the City Council has rejected almost $1 million in additional programs, equipment and personnel that were requested by various departments.

A proposal to overhaul the city’s general plan and zoning ordinance at a cost of $180,000 was given tentative approval.

Several factors contributed to the bleak budget picture. Sales and property taxes, the city’s biggest revenue sources, did not generate as much income as originally predicted. Some city projects that were expected to generate more tax revenue, such as the planned Auto Row, were not completed.

The city also faces new expenses such as an estimated $135,000 in new jail booking fees that the county is expected to charge.

This is the second year that the city has had to dip into reserves to balance its budget. Last year about $1 million in reserve funds was needed.

The final budget is expected to be passed at the June 24 council meeting.