HUNTINGTON BEACH : Hearing to Address 2 Budget-Cut Plans

The City Council will hold a special public hearing tonight on next year’s budget, which calls for $5 million in cuts.

Residents are invited to comment on two budget reduction plans that propose very different means of righting the city’s multimillion-dollar budget problems.

A plan prepared by City Administrator Michael T. Uberuaga emphasizes hikes in user fees, while a second proposal offered by a citizens’ panel created to review the budget favors greater spending reductions instead.

The 11-member citizens’ panel, called the Budget Review Task Force, suggests that the council either cut city employees’ scheduled pay increases by 2% or lay off 19 full-time employees. It would slash spending by $4.7 million and increase fees by $1.2 million.

Uberuaga’s plan does not call for pay cuts or layoffs. Instead, he proposes that the council reduce spending by $2.7 million and raise fees by $2.6 million.

Tonight’s hearing on the budget begins at 7 at City Hall.

In addition to balancing the 1992-93 budget, council members in the coming months will be considering long-term fiscal policies. Both Uberuaga and the task force have warned the council that past spending practices must be changed to correct the financial problems that helped create the current deficit.

Even as they try to cut long-term costs, council members will be seeking a way to fund $44.5 million in annual public improvements, such as lighting, storm drains and street projects. Officials stress that when such projects are continually delayed, the city may have to spend even more to fix faulty facilities.