BUENA PARK : Council to Study Preliminary Budget

The City Council plans to spend today examining the city’s preliminary 1993-94 budget, in which a shortfall of $470,000 is projected.

The public is invited to attend the work session, which begins at 8 a.m. in the council chambers at City Hall, 6650 Beach Blvd.

Greg Beaubien, finance director, said the city staff is proposing to use reserves to offset the shortfall in the proposed $28.6-million general fund budget.

The city’s total estimated budget for the next fiscal year is $37.2 million, which also includes the city’s $6.1-million water fund.

Beaubien said the city projects a water-fund shortfall of $1 million. As a result, the council is expected to discuss the possibility of increasing water rates to offset the amount.

In addition, Beaubien said the city is anticipating cutbacks in state funding, which could total up to $1.2 million. However, the impacts of the state cuts are not yet known. But potentially, with the current projected deficit plus state cutbacks, the city could face up to a $1.7-million shortfall in the general-fund budget, he said.

This fiscal year, the city had a $2-million budget deficit. But the council has taken action to cover the shortfall by eliminating jobs, reducing employee benefits and imposing a spending and hiring freeze. The council has also proposed increasing the hotel bed tax.

A public hearing on the 1993-94 budget is tentatively scheduled for the June 21 council meeting.