PLACENTIA : City Protests State’s Tapping Its Coffers

Anticipating that the state will continue to take money from the city’s treasury, the City Council this week approved a resolution protesting the state’s actions.

The resolution says the state’s attempt to deal with its budget woes by both increasing what it charges municipalities for services and appropriating a larger share of city revenues threatens the city’s financial stability and compromises services.

The state’s actions have resulted in an additional $209,000 in fees paid by the city for jail bookings and property tax collection for the 1991-92 and 1992-93 fiscal years. In addition, the state has taken $145,000 in tax revenue from the city and has forced the city to pay $438,000 to the state from its general fund and Redevelopment Agency budget.

“The state’s reduction in funds to local governments resulted in both new and increased charges, withholding of traditional revenues and therefore forced tremendous cuts in all local budgets,” the resolution reads.

In Placentia, cutbacks in the 1991-92 and 1992-93 budgets were blamed for the elimination of 11 full-time positions, including several Police Department employees, and a reduction of 14,000 hours of part-time employment. The city has also delayed replacing equipment and vehicles, frozen some salaries and implemented a hiring freeze.

The resolution was approved unanimously Tuesday and will be sent to Gov. Pete Wilson and members of the Legislature.