LAGUNA HILLS : New City Revises Budget for Overrun
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Provisions to handle a $247,000 budget overrun were made by the City Council, which approved a revised midyear budget recently.
The new budget calls for general fund expenditures of $1.69 million--almost a quarter-million dollars more than was estimated before the city’s incorporation late last year.
But rather than point to the current recession, which was blamed for midyear deficits of up to $500,000 in other South County cities, Laguna Hills officials said the problem lay in a misunderstanding with the county.
Under state law, the county is responsible for paying to maintain a new city for six months after incorporation. However, the city assumed that responsibility for parks and open space maintenance, which is exempted under the California statute.
City officials said the cost of taking care of parks, medians and public landscaping would run about $250,000 through the end of the fiscal year in June.
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