FOUNTAIN VALLEY : City Council OKs $42.8-Million Budget

The City Council approved a $42.8-million budget for the 1992-93 fiscal year Tuesday night, while raising water rates and some recreation fees to help offset lower revenue and unexpected costs.

The 9.5% water rate increase, effective Sept. 1, will raise average monthly bills from $18.94 to $20.74 for residents who consume 15,000 gallons per month. The increase was brought on by hikes from the Metropolitan Water District of Southern California and the Orange County Water District and shortfalls from the current fiscal year.

Those water agencies also predict increases each year for the next four years, which will result in a 6.6% rate increase to residents each year.

The council also approved fee increases for swimming lessons, racquetball court use and adult softball teams, as well as building and hazardous-materials inspections.

“We started out with a $579,000 deficit and as it ended up we’ve balanced our budget,” Councilman John Collins said. “It is not an easy task. Nobody likes to restrict services and nobody likes to raise fees, especially in these tough economic times.”

The fiscal situation, however, did not prevent the council from spending money to repair sidewalks and try other strategies to reduce future expenditures.

One example is $6,000 to modify the city jail to keep more suspects in the city, rather than sending them to the County Jail, which charges $154 for each suspect booked. A report from Police Chief Elvin Miali said the improvements will allow the city to house suspects for a longer time and avoid using the county facility.

The city will start a new eight-year program at a cost of $82,000 per year to rebuild sidewalks that have been uprooted by trees or damaged by settling soil conditions.

A hiring freeze started last year, which has left six positions open, will continue at a savings of $300,000 in the coming year, said finance director Elizabeth Fox.

Though no city services will be cut and no layoffs will be made under the adopted budget, the city may have to re-evaluate that when the state approves its budget, Fox said.