BREA : City Budget Passes; Deficit Is Covered

After figuring out ways to cover a $1.4-million deficit that includes closing City Hall every other Friday, the City Council this week adopted a budget for fiscal year 1993-94.

The $27-million budget was approved on a 3-1 vote Tuesday. There were no new taxes, no layoffs or cuts in city services. But a hiring freeze will continue, non-residents will now pay paramedic fees, and some maintenance services will be contracted out.

Councilwoman Kathryn E. Wiser voted against adoption of the budget, saying it is growing too big. Councilman Carrey J. Nelson was absent.

“I think that we really need to look where (all the money) is going,” Wiser said.

In a report to the council, City Manager Frank Benest said a combination of increasing expenses and declining revenues was responsible for the deficit. He said that income is projected at $26.3 million while expenses are estimated at $27.7 million, marking the third straight year that expenses exceeded income by more than $1 million.

“Sales-tax producing businesses are not bouncing back,” Benest said. He added that the city also continues to suffer from the loss of development fees and permit revenues because few developers are starting projects.

Benest said the plan to close City Hall on alternate Fridays will save about $100,000 in utility and maintenance costs. City employees will work 80 hours in nine days and have the 10th day off. Negotiations are going on with employees unions, and the new work schedule is likely to begin in October, he said.

The hiring freeze will save $400,000, while eliminating vacant positions at the Maintenance Services Department. Seeking contractors for tree trimming and concrete work will save another $230,000, Benest said.

Benest said $100,000 will be saved by reducing part-time hours. The city will earn about $25,000 by assessing a fee for paramedic service to non-residents for traffic accidents, he said.