SAN JUAN CAPISTRANO : Council Approves 5-Year Budget Plan

The City Council approved a five-year budget this week, including what was called a tight, $11.2-million operating budget for the current 1991-92 fiscal year.

The budget allocation for 1991-92 is $715,000 less than last year’s, as adjusted in January. The budget does not include a reserve, although more than $763,000 remains in city coffers from last year, said David Bentz, the city’s financial officer.

Bentz said the budget offers little room for unexpected spending.

“It costs the city generally about $1 million a month to operate, so that ($763,000) could be eaten up very quickly,” Bentz said.

City Manager Stephen B. Julian told the council that city staff members will increase efforts to build up the city’s reserve.

“We do try to take a very prudent course, which will be to build a reserve as things get better,” Julian said.

The budget reflects “a more conservative philosophy than prior years,” with revenue estimates assuming a “continuance of the sluggish state of the local economy,” said George Scarborough, the assistant city manager.

Before approving the budget, the council pulled all appropriations for the city’s Decorative Arts Center and the San Juan Research Institute, a scientific center, and asked staff members to consider whether to continue funding the organizations in the future.

“The time has come for those two groups to support themselves,” City Councilman Jeff Vasquez said. “Philanthropy has its place, but we can’t afford it anymore.”

The council also removed from the budget an automatic 10% incentive bonus plan for city employees, which adds up to about $60,000 a year. That plan will be considered again by the council at a later date.

The somewhat gloomy outlook for the budget was predicted by Julian last month at a city budget workshop.

“This is a very difficult time for this city and virtually every city in the state,” he said. “The council will be faced with some difficult choices.”