BUENA PARK : Reserves Earmarked for Budget Shortfall

The City Council adopted a 1993-94 budget Monday in which reserves will be used to cover a $439,719 shortfall in revenues.

The council voted 5-0 to approve the city’s total operating budget of $37.3-million, which includes $6.1 million for the water fund.

However, because city officials project an $800,000 shortfall in the water fund, the council will consider increasing water rates in July to cover the deficit, said Greg Beaubien, finance director.

City officials said that over the last three years, the city has had substantial revenue losses because of cutbacks from the state, the slow economy and mandated programs from both state and federal governments.

Beaubien said state cuts since fiscal 1990-91 have totaled $1.9 million, including $430,000 in property taxes, $625,000 in redevelopment agency money, and $150,000 in lost revenue from cigarette taxes.

As a result, the city made substantial cuts to its 1992-93 budget, trimming it by $1.5 million.

In an effort to raise $430,000 to cover the projected shortfall in the 1993-94 budget, the council has eliminated 11 jobs, reduced employee benefits, imposed a spending-and-hiring freeze and proposed to increase the hotel bed-tax next month.

Beaubien said the city is anticipating additional cutbacks in state funding this year.

Councilwoman Rhonda J. McCune said that in order for the city to cope with lost revenues, “we need to continue to look for ways to streamline services and to share services with other cities. If we can contract out for a certain amount of services and still provide the same level of service, then I think it’s a good way to go--and I think you’re going to be seeing a lot more cities doing that.”

As one cost-saving measure, Buena Park is currently looking at the possibility of contracting its fire protection services with the Orange County Fire Department.