TUSTIN : ‘92-93 City Budget Gets Initial Approval

The City Council has given initial approval to its budget for the 1992-93 fiscal year but will not officially approve the plan until the effect of state budget cuts is clear.

The city expects to lose at least $1 million in vehicle licensing fees and property tax revenues to the state, but budget officials assured the council that even with the projected loss, the city will still have a balanced budget.

City Manager William A. Huston urged the council to consider ways to lessen the impact of potential losses in revenue.

Some of the options include increasing city fees, enacting new fees and “gearing up” for a reduction or elimination of some services provided by the city. The council will discuss those options at a budget meeting July 20.

The city’s budget currently does not contain any increases in fees or reductions in services.

Councilman Jim Potts said the city should focus on increasing sales tax revenues as a way to offset losses to the state. Sales taxes account for more than 44% of Tustin’s general-fund revenues and are projected to amount to more than $10 million in fiscal 1992, nearly a $1-million increase over the fiscal year that ended June 30, budget documents show.

Property taxes are also expected to increase. According to budget documents, property taxes will total $4.5 million this year and are projected at $4.8 million next fiscal year.

Despite slight increases in revenues, the budget reflects overall spending cuts in each department. Much of the reduced spending comes from reductions in personnel.

The city instituted a hiring freeze in fiscal 1991, leaving 10 positions vacant. Two more positions will probably be left vacant for this fiscal year, officials said.

Tustin offset much of the pressure to adopt a balanced budget by the July 1 deadline by approving a resolution on June 15 allowing city operations to continue until a fiscal plan is approved.