SEAL BEACH : City Budget Doesn’t Include State Cuts

City Manager Jerry L. Bankston warned officials this week that cutbacks by the state could cost Seal Beach an additional $1.4 million in its budget for the next fiscal year, representing about 10% of the city’s general fund.

City officials said they do not plan to include the expected $1.4-million reduction in the budget they are preparing for the fiscal year that begins July 1. If a revision is necessary, they said the city would have to make cuts in vital services.

The grim forecast comes before the City Council has had a chance to complete the budget for the upcoming fiscal year. Bankston said the budget will likely be available on Friday, even though the city still won’t have an accurate picture of revenue from the state.

Seal Beach, hit hard by a slowed economy, new county fees and a fire last month on the municipal pier that will drain at least $100,000 from the city’s coffers, will start the new year with marginal reserve funds and an overall operating budget that is nearly $500,000 less than last year’s.

Preliminary estimates for 1992-93 are that the city will reap more than $15.4 million in revenue and spend nearly $15.3 million, Bankston said.

Bankston said the city cut costs during the current fiscal year by cutting 14% of its work force, or 17 employees.

“We absorbed the recessionary decreases . . . and over $350,000 the state took from us. We are not where we should be,” Bankston warned. “There is no fat.”

A public hearing for the 1992-93 budget will be held at the June 22 City Council meeting.