FULLERTON : Facing Deficit, City to Weigh Cuts, Fees

Cut jobs or raise fees? The City Council will consider those questions in a special budget meeting Tuesday.

The city faces an estimated $4.2-million deficit for fiscal year 1993-94, which starts July 1. City Manager James L. Armstrong has said he wants the council to begin setting spending priorities now. The general fund expenditures for 1992-93 were about $47 million.

Armstrong and council members acknowledged that a utility tax or an assessment district could be considered to raise revenue.

Jobs may have to be cut or city services closed to save money, council members warned.

“Something is going to have to give,” said Mayor Molly McClanahan.

“There’s not an awful lot we can do besides closing facilities and getting to personnel issues,” said Councilman A.B. (Buck) Catlin.

The council will meet at 5 p.m. at the Senior Multi-Service Center, 340 W. Commonwealth Ave. They will take a brief dinner break at 7 p.m. and will continue discussion until 10 p.m.

McClanahan said she will welcome public comment at the meeting. Council members are “looking at community priorities,” she said. “That’s where the community comes in.”

Armstrong has had staff teams studying city spending in four areas: public safety, library and maintenance work, internal staff costs and city work procedures. The studies began in November and were recently completed.

Catlin said he would like the council to consider creating an assessment district in the city to pay for general services such as tree care. If enacted, the district would tax each homeowner in the city.

A utility tax could be levied on gas, electric, phone, water and cable services. The city of La Habra recently enacted a 6% utility tax; Stanton has scheduled a public hearing to consider a similar tax. Those cities are estimating the taxes could raise more than $1 million.

McClanahan said the council will consider consolidating jobs and offering retirement incentives. She noted that the city spends about 75% of its general fund on salaries and benefits.

The general fund is the basic source of city money that pays for the fire and police departments, maintenance, libraries and other costs.

Catlin also said the city may have to increase fees at the library. “We could charge more for the services (residents) desire most,” he said.