SIMI VALLEY : New Budget Calls for Tapping Reserves
The Simi Valley City Council has adopted a 1992-93 budget that shows a deficit of $111,000.
The city expects to receive revenues of $24,976,700 during the new fiscal year, while expenditures are estimated at $23,970,850, Ken Schechter, the city’s budget director, said Tuesday.
Schechter said the additional revenues will be used to cover the current year’s $1,116,850 shortfall, with the $111,000 deficit representing the difference.
He said the city will reach into its reserves to cover that deficit.
Schechter also said the budget could change if the Legislature decides to withhold more than $1 billion in tax revenues from cities to balance the state budget. Simi Valley alone would stand to lose as much as $4 million.
If that should happen, city officials warned that they may have to delay major improvement projects and possibly lay off personnel.
“We would be looking at cutting heads,” Councilman Michael Piper said.
In the meantime, Schechter said, the city will continue to maintain its freeze on hiring and purchases of major equipment.
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