TUSTIN : Council to Defer Adoption of Budget

The City Council will examine its 1992-93 budget today but will delay adopting it until the state approves its fiscal plan.

“Just like every other city, we are on pins and needles until they (the state) decide on what they will take,” said Assistant Finance Director Erma Hernandez. The city has assumed some state funding losses and is still able to produce a balanced budget, she said.

Tustin was hit hard by a loss of state revenues during the current fiscal year and is expecting more of the same next year. The city expects to lose more than $73,000 in 1992-93 and $3.2 million over the next three years.

Because the city will not have adopted a budget when the fiscal year starts on Wednesday, the council adopted a resolution at the June 15 meeting that allows city operations to continue in the interim.

This year, Tustin officials will present a three-year spending plan to the council. City Manager William A. Huston said the long-term spending outline will help the council in its decision-making by providing projections of the city’s financial future.

In a memorandum to the council, Huston projects a net 4.4% increase in revenues for the city. But according to the figures in the draft document, 1991-92 general fund revenues are projected at $24.6 million, while revenues for the new fiscal year are expected to peak at $23.9 million.

Huston said the discrepancy exists because the general fund balances include money that will be used for specific expenditures, not for day-to-day operating expenses such as running the Police Department. For example, $1.5 million that is included in the general fund will be used for a fire station in Tustin Ranch.

Expenditures also appear to decrease from the current fiscal year to the next. The draft document shows that in the current fiscal year expenditures are expected to reach $23.2 million, while next year’s are projected at $23.1 million.

Though the draft document reflects spending cuts in every department, officials said there will not be reductions in services. Additionally, service fees, with the possible exception of water rates, are expected to remain the same.

The city will also save money by leaving two positions vacant next fiscal year. This year, the city eliminated 10 positions as a cost-cutting measure.

The budget meeting will be held at the Tustin Senior Center at 200 South C Street. All council meetings will be held at the Senior Center until council chamber renovations are complete.