HUNTINGTON BEACH : Waterworks Money to Help Offset Deficit

The City Council has voted to make up a $2.2-million shortfall in this year’s budget by tapping income from the city’s water operations fund and holding down hiring and other expenditures.

Council members voted to pursue the budget-balancing plan recommended by City Administrator Michael T. Uberuaga. The shortfall resulted from the state’s previous action to help balance its budget by taking revenues from cities, as well as from declining revenues during the current recession.

But council members rejected Uberuaga’s suggestion that they also dip into the city’s reserve funds to balance the city’s budget. City Councilman Victor Leipzig said that reserve funds should be kept intact in case of “a catastrophic emergency” such as a major flood.

Officials will make up most of the deficit by transferring $1.5 million in waterworks income and other cuts.

Uberuaga is expected to present a series of expenditure reductions that will slash about $700,000. The cutbacks would include expanding a hiring freeze, reducing overtime pay and cutting back on most city expenditures.