DANA POINT : City Adopts Budget, Freezes Spending

After adopting a fiscal 1992 budget this week showing $11.5 million in general fund revenues, the City Council temporarily froze all spending except for what is needed to keep the city operating.

The action Tuesday night was taken to meet next Tuesday’s deadline for adopting a budget by the end of the current fiscal year. The move will give the council the option of discussing possible amendments during its July 14 meeting, after the state is expected to adopt its fiscal year budget, Councilwoman Eileen Krause said.

“We passed the budget as it was recommended because the city must stay in business,” Krause said. “But we don’t want any discretionary money spent. We plan to hold a public hearing and do some fine-tuning on the budget in July.”

The new city budget shows increased revenues from $11.16 million for fiscal 1991, but they are down from the fiscal 1990 budget of $11.58 million, said Ann Schroeder, the city’s management analyst. The reduction in revenues are due mainly to the downturn in the economy and recent state legislation that cuts back on city funds, Schroeder said.

The city is also bracing for further losses of revenues from the state, particularly a cut in the share of vehicle registration fees, Schroeder said.

“Our budget from last year showed revenues of $1.79 million in motor vehicle fees,” Schroeder said. “We won’t necessarily lose all of that, but we don’t know how much we will lose.”

The city budget shows expenditures for the coming year of $10.31 million.