GARDEN GROVE : City Leaders Predict Financial Problems

Echoing other local government officials, Garden Grove’s mayor and city manager Friday predicted dire financial trouble ahead for the city.

“The city of Garden Grove is experiencing a time of crisis,” City Manager George Tindall said during the annual State of the City address. Although the city is trying to improve its economic base, a second year of inflation is eroding efforts, he said. At the same time, cities must pay increased costs that come with an “unlimited stream” of new requirements handed down by state and federal agencies, he said.

In addition, the county has begun charging the city for property tax collection and jail booking fees, taking a sizable chunk of the city’s budget, officials said.

Garden Grove is facing a deficit of $3 million to $5 million for the 1992-93 fiscal year, Tindall said.

Unless some drastic changes take place, the City Council will probably be discussing cuts to basic services, including police and fire departments, officials said.

“We raised some revenues last year but there’s just no place else to go but police and fire,” Councilman Mark Leyes said.

But on the bright side, Mayor W. E. (Walt) Donovan announced that Price Club has signed an agreement with the Redevelopment Agency to open a store near the Civic Center.

The store, which would be on 13 acres just south of Garden Grove Boulevard, is expected to generate about $500,000 a year in sales-tax revenue, officials said.

Donovan said city officials’ attendance at a Las Vegas convention that critics labeled a “junket” is largely responsible for the lucrative deal.