CYPRESS : City Stays in Black, Limits Spending

While other communities around the county have had to cut positions and programs to keep pace with the sagging economy, the City Council this week passed a balanced budget without a hiring freeze or dipping into reserves.

New traffic signals on Valley View Street and playground equipment for city parks were given approval as part of the $18-million budget approved Monday.

“We have been pretty lucky in getting through the recession,” said Finance Director Richard Storey.

Although the budget is in the black, tight controls have been kept on spending, and the budget includes few new or expanded programs.

More than $1 million has been set aside for traffic signal improvements, and an additional $303,000 will be used to maintain parkways. The Parks and Recreation Department’s budget of $3.5 million, which was also approved Monday, provides toddlers play equipment at various city parks and $99,000 for restrooms at Veterans Park.

The city hiring freeze, which was lifted in January, was not reinstated. However, still looming are state budget cuts that could siphon off more than $2 million from city coffers and throw a wrench into the balanced budget.

“This is going to be a major blow to the city of Cypress,” said Mayor Richard Partin. “It is going to hurt parks and recreation programs, police, fire . . . and it is going to hurt terribly hard.”

If the state comes through with its threat to withhold some property tax revenues and vehicle license fees, the budget will be re-evaluated. Measures ranging from raising taxes to cutting positions could be considered to take up the slack, Storey said.

In one cost-saving move, the city has started entering into joint venture agreements with surrounding cities to help split the expense of several needed programs. At its meeting Monday, the council approved a contract with La Palma, Los Alamitos and Seal Beach to share an administrative consultant for waste management. A similar agreement was passed several months ago for the use of a court liaison, and others are being looked into, Storey said.

These measures will be considered once the state budget is approved. “There is not much for us to do right now, but just wait and see,” Storey said.