LOS ALAMITOS : City Adopts Budget but Hears Warning

The City Council has adopted a tentative $7.3-million budget but was warned by the city’s top administrator that Los Alamitos stands to lose about $730,000 in additional state revenues.

State legislators grappling over their own $11-billion deficit are now considering taking more of cities’ property tax revenues, according to City Manager Robert C. Dunek. Los Alamitos, which last year had its first balanced budget in five years, could lose roughly $300,000--27% of all the city’s property tax revenue, he said.

On top of that, the state may also keep or reallocate the $430,000 in vehicle license revenues that have traditionally been apportioned to the city.

Dunek said city staff has discussed some ways to cut spending by 10% but will basically wait until the state completes its budget, which is expected sometime next month. Any cuts made before the state acts “may be too drastic . . . or it may not be enough,” Dunek said. “We’re not sure exactly what will happen.”

Mayor Ronald Bates agreed that cities can only wait to see “how Draconian the state is actually going to be this year.” Barely concealing his anger, Bates noted that the state in previous years has already taken millions of dollars worth of revenue from cities, including cigarette tax and jail booking fee money.

“It always amazes me that cities work hard to balance their budgets and the state seems to put their hands into cities’ pockets,” Bates said.

Budget constraints further forced the council to decide to withdraw its membership in the Santa Ana River Flood Protection Agency. The agency was formed in 1974 to support a federal flood control project on the river and has 26 cities and special districts as members.

Membership costs $1,200 annually. Los Alamitos, which joined in 1986, owes $2,800 in back dues that couldn’t be paid over the past two years because of budget woes, according to Dunek.

Since the city’s financial picture hasn’t improved and the funding for the $1.5-billion project has been secured and improvements are underway, now is a good time for the city to pull out of the agency, city officials said.