BUENA PARK : City to Freeze Hiring, Spending 120 Days

A 120-day hiring and spending freeze goes into effect today at City Hall to help the city deal with an expected $2-million budget deficit this fiscal year.

The City Council on Tuesday agreed to halt unnecessary spending and stop recruiting for eight full-time positions and three part-time positions.

The council also agreed to freeze possible openings of 11 full-time positions and six part-time positions expected to turn over during the four-month hiring moratorium, which ends in January.

Councilman Donald L. Bone said the intent of the freeze is to curtail expenditures except for absolute necessities.

“This 120 days will allow us time to get a handle on exactly how much this last hit from the state will cost us and the options on how we’re going to make up the (money) the state stole from us,” Bone said.

Bone added that the council must look at the long-range problem of how to balance the budget without jeopardizing city operations and services.

City Manager Kevin O’Rourke said the city faces $500,000 in revenue losses to the general fund as a result of the state cutbacks. In addition, the city dipped into its reserves to the tune of $1.8 million to balance its 1992-93 general-fund budget.

The city is also expected to lose $625,000 in redevelopment funds, which won’t affect the general fund. But the revenue loss is expected to delay housing rehabilitation projects and new commercial developments.

O’Rourke said state budget impacts to the city over the last three years have totaled $1.9 million.

Expenditure freezes will likely include cutting travel, consulting and overtime expenses and delaying purchases such as police cars and office furniture, O’Rourke said.

But O’Rourke said cutting back on spending won’t affect the existing level of police and fire service.

The city staff will recommend spending cuts to the council at the Oct. 19 meeting.

At the Sept. 21 meeting, council members expressed anger over the state’s cuts to the city and took emergency action to direct the city manager to look at ways to impose the freezes on hiring and spending.