Orange OKs Budget With $2.5-Million Deficit

In a special session, City Council members Tuesday adopted an out-of-balance budget for fiscal year 1993-94, voted down a proposed utility tax and approved $2.3 million in service cuts.

The council approved a $47-million interim budget by unanimous vote. But with city revenue projected at $44.5 million for the fiscal year, the city has $2.5 million more in expenses then revenue, leaving the budget unbalanced.

The continuing deficit results in part from the decision not to impose a 4.5% tax on electricity, telephone and water service. City officials had estimated that the tax would have raised more than $5 million in the coming fiscal year, wiping out the gap between revenue and expenditures.

Council members called the budget a temporary measure and said they need more time to study ways of reducing the cost of running the city.

“We plan to close the budget deficit by the end of the summer,” said Councilman Mike Spurgeon. “We had a number of hearings on the utility tax, and the citizens said any tax should go on the ballot.”

The cuts in services approved Tuesday night include layoffs of more than 20 employees, reductions in hours at the city’s three libraries, the privatization of city landscaping services and closure of the Job Resource Center, which helps dayworkers find jobs.

The city had already made numerous budget cutbacks over the past year, including layoffs of more than 70 city employees, cutbacks in the paramedic and brush fire divisions of the Fire Department, shutting down the Santiago Hills branch of the library, a furlough plan that cut worker pay by 10% and shutting down City Hall on Fridays.

Carmen Saldana, supervisor of the Jobs Resource Center, predicted an increase in workers soliciting work along Orange’s main roads when the Job Resource Center closes.

“About 120 people come in here daily,” Saldana said. “Once people lose the job (center) they will have to go back into the streets like they used to to look for work.”