South Pasadena : Budget OKd but Has Hitch

The City Council last week agreed to pursue new revenue alternatives, including a utility users tax, after approving a $10.1-million operating budget saddled with a $1.08-million projected shortfall.

The 1992-93 budget, approved unanimously Wednesday, projects a 5% cut in expenditures but carries about $490,000 in debt from the current fiscal year, which ends June 30. Combined with a projected shortfall of $593,000 for next year, the total deficit would be $1.08 million.

“Some sort of assessment, such as a utility tax, is almost inevitable,” Councilman Paul Zee said.

The council directed staff to prepare a report on a utility tax plan for its next meeting. Such an assessment would have to be approved by voters, and the council faces an Aug. 7 deadline for placing the measure on the November ballot.

To highlight the severity of the budget crisis, council members also unanimously agreed to cut their salaries by 50%, from $300 to $150 per month.

“It’s insignificant, but it’s a matter of principle,” Councilman James Hodge said of the salary reduction. “It’s a symbolic gesture.”