LOS ALAMITOS : City Will Consider $394,500 Budget Cut

The City Council will meet today to consider budget cuts totaling $394,500 that will include the elimination of three positions and the delay of some capital improvement projects, according to officials.

“These budget amendments will allow the city to fully implement our budget and begin needed capital projects rather than continuing to be held hostage by Sacramento,” said Assistant City Manager Gerard Goedhart in a report to the council.

Three full-time positions--planning assistant, police officer and building clerk--would be eliminated, operational expenditures would be eliminated or reduced, and scheduled capital improvements would be put on hold.

The council adopted a tentative $7.3-million 1992-93 budget on June 22. However, it did not take into account possible revenue losses as a result of the state’s efforts to plug its own $11-billion deficit.

The city feared it could lose as much as $700,000 in revenue if the state decides to divert the city’s traditional share of property taxes and vehicle license fees.

In preparing the budget cuts, however, staff assumed a “realistic worst-case scenario” whereby the city loses $400,000 in property tax revenue.

With the loss of an additional $30,000 when the city deactivated the redevelopment agency in July, but with an expected increase of $25,000 from recreation classes, the net revenue loss would be $405,000, Goedhart said.

If the state reduction is less than $400,000, Goedhart said staff will recommend the budgeted expenditures be restored. If it is more than $400,000, further reductions must be made within one month after the state’s action, he said.

The budget cuts will have some good effects, Goedhart said. The city’s reserves will be partially restored and the council may be able to grant “modest salary adjustments to employees who haven’t had an increase since 1990.”

Part-time employees will also be affected by the budget cuts. Additionally, adjustments will be made in the funding for the records management project, recycling information, emergency preparedness, contingency funds, supplies, training, travel and meetings.

To be eliminated are allocations for new audience chairs for the council chambers, telephone and computer system upgrades and office chairs.

Improvement projects to be reduced or eliminated are replacement of the police ceiling containing asbestos, City Hall improvements, door replacement, community center painting and signs at Laurel Park.