BREA : City Expected to OK $26-Million Budget

The City Council is expected to approve a $26.2-million budget today for fiscal year 1992-93.

As much as $750,000 may be slashed from the spending plan, however, once an analysis is completed of the city’s loss of property tax revenues this year, officials said.

Financial Services Director Larry Hurst said Monday that the budget does not reflect possible state cuts of anywhere from $500,000 to $750,000 in a “worst-case” scenario.

“The city is in the process of prioritizing its needs,” Hurst said. “It will be very difficult and very painful.”

In planning for the budget, Hurst said, officials tried to anticipate the worst possible state cuts and adopt a budget based on those projections. After analyzing the impact of the state cuts, officials would recommend further cuts at a later date, if necessary.

He said officials had expected a 5% increase in property taxes that would have netted the city $3,185,000. Instead, the city may lose 18% of that amount because of the state’s decision to change the way it disperses property tax revenues.

As part of the state’s budget package, legislators are shifting $1.3 billion in property tax revenues from local governments to schools. The state Senate has voted to shift $195 million from cities.

If this figure holds, as was projected by the League of California Cities, Hurst said the city may lose 9% of its property tax revenues.

“I’m not saying this is good, but $300,000 is a lot better than $750,000,” Hurst said.

Hurst said no local taxes are contemplated to plug the revenue shortfall but there may be increases in certain fees.

To increase revenues, various options were presented to the council in May, including charging non-residents for the use of Brea paramedics. That measure was expected to save $12,500. The city had also discussed using employees from the Maintenance Services Department for weed abatement, saving the city $50,000.

Hurst said the city started the new fiscal year with a $500,000 deficit carried over from the last year. However, officials saved $200,000 due to an ongoing hiring freeze, a contract with Yorba Linda for police services, and another with Diamond Bar for parks and recreation services.