BUENA PARK : City OKs Policy on Cuts, Services, Hikes

Because Buena Park is dealing with a financial crisis, the City Council on Monday approved a policy that outlines possible cuts in the work force, reductions in city services and increases in taxes.

“We are in a terrible financial crisis,” City Manager Kevin O’Rourke said.

O’Rourke said the city has a $2-million budget deficit this fiscal year, which ends June 30, and faces the possibility of up to another $2-million deficit in the 1993-94 fiscal year.

The council also Monday took action to impose labor contracts with three city employee groups. The packages, which include reduced benefits and no salary increases, will generate about $500,000 in savings for the city with its $30-million general fund budget.

Three of the city’s employee unions--Buena Park Police Assn., Buena Park Firemen’s Assn. and the Buena Park Police Management Assn.--have rejected their labor contracts and protested city-imposed settlements.

The reason the city is in financial straits is due to the deteriorating local, state and national economy as well as the loss of revenues from the state, O’Rourke said.

Councilman Donald L. Bone said the council’s fiscal task will not be easy this year.

“There are some very hard decisions on how to deal with the total deficit picture,” Bone said. “And we won’t be able to come to a total solution until the state legislators deal with the state’s (financial) problem.”

Citing the deteriorating financial situation, city leaders said policy statements make clear to the community and employees the council’s strategy.

“We want everybody to know upfront,” O’Rourke said. “The policy statement is to guide the community so they can understand as the council takes the community through its financial problems.”

O’Rourke said he will make recommendations to the council that include the possibility of raising taxes in order to increase revenues. Alternatives to be presented to the council will include increases in the transient occupancy tax, water rates and utility users tax that covers gas and electricity.

O’Rourke said reserves have been used the last three years to deal with the city’s financial problems. “A year from July, we could be out of reserves,” O’Rourke said, adding that the city used $2 million in reserves this fiscal year.