CYPRESS : Fee Increases OKd to Balance Budget

Struggling to keep services intact, the City Council this week tentatively approved two fee increases to make up a projected $744,000 shortfall in the 1993-94 budget.

During a workshop Monday night, the council, on 4-1 vote, gave preliminary approval to a $15.5-million budget that calls for substantial increases in street sweeping and waste disposal franchise fees. Mayor Gail H. Kerry cast the dissenting vote, saying government is overburdening the taxpayer.

But even with the increases, the city will still have to lay off six city employees and tap into its general reserve fund to offset an anticipated loss of about $300,000 in state property tax revenues.

“It’s an emergency time, especially with the uncertainties coming out of the state,” City Manager Darrell Essex said. “And with the issues of limited growth and drops in property and sales taxes, we are at a crisis point.”

Street-cleaning services will be charged to residents and businesses on their water bills. Residents who currently pay 50 cents a month for street cleaning will begin paying $2.50 a month for the same service within the next three months.

For the first time, the street-sweeping fee will also affect business owners, who initially will be charged the same rate as residents. Fees for businesses are expected to be raised even higher, however, after the size of store frontages can be tabulated, city officials said.

The city will increase by about 8% the franchise fee that Briggeman Disposal Services Inc. pays the city. In turn, city officials expect the company to pass the increase on to customers. Residents who now pay $8.21 per month for trash collection can expect to pay about 8% more a month, city officials said.

The two fee increases will bring in about $360,000 annually to the city, Essex said..

The council will complete work on the budget at its meeting Monday, Essex said.