LOS ALAMITOS : Amended Budget Adopted by Council
The City Council has adopted an amended 1993-94 budget that reflects a larger surplus because the state took less in property taxes than the city had anticipated.
With Councilman Anthony R. Selvaggi absent, the council on Monday approved adjustments to the $6.3-million budget adopted in June, before the state had been able to pass its own budget.
“We’re not out of the woods yet,” said Mayor Ronald Bates. “If the state hiccups, we may still go down with pneumonia.”
Bates has repeatedly criticized the state for taking property taxes away from cities.
Assistant City Manager Gerard Goedhart said the state took $110,000 in property taxes instead of the $300,000 that the city had set aside for a worst-case scenario. In addition, he said, the city received a $20,000 share for vehicle registration fees.
The additional money pushed city revenue to more $6.4 million, a 2% increase from earlier projections, which Goedhart said will result in a $135,000 surplus. City expenditures are estimated at more $6.3 million.
In the original budget, the city projected a surplus of just $3,000, Goedhart said.
However, city sales tax revenue will probably be $100,000 less than earlier estimates because of the lingering recession, Goedhart said. In addition, because fewer people are buying property, the city will get less in real estate transfer taxes, he said.
“We’re in a better financial condition than we expected,” Goedhart said. “But we have to remain conservative in our budget approach.”