FOUNTAIN VALLEY : Council Approves $43-Million Budget

The City Council has approved a balanced $43-million budget for fiscal year 1993-94 that leaves 15 staff jobs vacant and raises fees for some police services and recreational programs.

“If we had adopted the budget without taking measures, we would have had a shortfall by the end of next year of $609,000,” said Elizabeth Fox, fiscal services manager and city treasurer. The council approved the new spending plan late Tuesday.

However, Mayor Laurann Cook said there still could be trouble if the state keeps more local property tax revenue to balance its own budget.

“We are in really good shape at this point, but I have to say that with caution because we don’t know what Sacramento is going to do,” Cook said.

Fountain Valley could face a $1.2-million reduction in property tax revenue depending on how much the state takes, according to Cook.

But for now, the city has a balanced budget without having to use its reserve fund, largely because the council decided to leave 15 jobs vacant, saving about $400,000 in salaries and another $334,500 in related benefits.

However, Fox expects a revenue shortage in the city’s $6.2-million water fund because the cost of buying water is expected to increase. In the event of a shortage, she said, the city will be forced to increase its water rates.

The new budget increases the cost of some police services. For example, copies of statistical crime reports will cost $50 or more, and police will charge $60 each, instead of $50, for more than two responses to false alarms by a security system.