Santa Clarita / Antelope Valley : Santa Clarita OKs Spending Plan That Holds Line : Finances: The budget calls for cuts, but officials say the city has been spared the difficult choices facing other local governments.

The City Council unanimously approved a $49.7-million budget, which includes $11 million for infrastructure expansion and improvements.

Santa Clarita officials diverted $3 million in capital improvement funds at the last minute to bolster the city’s reserve fund, said Terri Maus, the city’s budget officer.

The budget for the 1993-94 fiscal year that begins July 1 reflects a “hold-the-line” strategy amid declining state revenues and economic pressures caused by the recession, Mayor Jan Heidt said.

“The city budgets to projected revenue, not to programs and services,” she said. “That’s why some cities have such large deficits.”

The city expects to get about $1 million less than it received in the current fiscal year in property tax and motor vehicle in lieu fees--two primary funding sources--under state lawmakers’ plan to shift $2.6 billion in state funding to schools, said City Manager George Caravalho at Tuesday’s budget meeting.

Originally, the city predicted it would lose an estimated $886,000 in property taxes and $157,000 in motor vehicle in lieu payments from the state, Caravalho said.

“If we have to face another hit like this year, it will place us in a very tight position,” he said.

But under a state plan placing more emphasis on cuts to county governments, which was approved in the lower house and debated in the state Senate on Wednesday, Santa Clarita could recover up to $400,000, said council member Jill Klajic.

City officials estimated an additional $1-million decrease in development-related revenues lost to shrinking building activity, and passed a budget that includes service reductions in its engineering and building and safety departments, reflecting reduced service demands.

The city increased its public safety budget to $9 million for the coming fiscal year, from $8.4 million last year, yet plans to reduce traffic patrol and could eliminate a community relations officer’s position to offset liability and cost-of-living increases for sheriff’s deputies.

Klajic said the loss of law enforcement personnel would be unacceptable.

“I think the issue of additional officers is a real concern,” she said. “If we can’t get that money back from the state we will have to find revenue to maintain services at the present level.”

Some revenue is expected to be replaced by an increase in city sales tax earnings, which are projected to rise 8% to $12.8 million from $11.5 million a year ago, primarily on the strength of the Valencia Town Center, a new mall, and the Price Club, a wholesale outlet opened last year.

Spending is expected to total $38.7 million, a $2-million reduction from the current fiscal year. A decision to leave vacant 11 positions in will save about $840,000.

The city’s reserves are estimated at $7.4 million for the year, a reduction from $9.1 million a year ago.

Big ticket items such as spending $1 million to purchase Metrolink land currently leased, $2.1 million for completion of a new city hall and an accompanying parking structure and a $1-million pavement sealing program, are planned for the coming fiscal year.

Despite the slight service cutbacks, Santa Clarita officials recognized that they have been spared the hard decisions many cities are facing as they assess and value the importance of services and programs.

“Not all of the funds are going into today’s issues or yesterday’s problems, we have that kind of balance in this budget,” said Caravalho.