LOS ALAMITOS : State Cuts May Yet Alter City Budget

The City Council is scheduled to adopt a tentative $7.3-million budget Monday evening, but like other cities and school districts across the state, Los Alamitos still faces the potentially crippling loss of hundreds of thousands of dollars in state revenue.

The city, which last year had its first balanced budget in five years, now faces the possibility of losing up to $600,000 in vehicle license fees and property tax revenue that the state wants to keep or reallocate to reduce its own $11-billion deficit.

City administrators said they have not yet come up with specific proposals for cutting 10% from the budget, which would be necessary if the state revenue does not come through.

During Monday’s session, the council also plans to discuss deactivating the city Redevelopment Agency, since voters recently rejected the proposed redevelopment plan.

The council formed a Redevelopment Agency in 1989, and a year later adopted a redevelopment plan, hoping to attract and retain businesses and subsequently increase revenues.

But residents, who feared that the plan may have eventually been extended to residential areas, opposed the plan, despite city officials’ repeated assurances that eminent domain would not be imposed to seize properties.