BUENA PARK : Budget Deficit Is More Than Expected

A six-month review of the city’s budget this fiscal year shows that the deficit has increased rather than decreased.

“The bottom line locally is we’re not seeing an economic recovery in our revenue sources,” said Finance Director Greg Beaubien.

In June, when the City Council adopted the 1993-94 budget, a $400,000 shortfall in revenue was projected. Reserves were to be used to cover the deficit.

But City Manager Kevin O’Rourke said the total deficit to date is about $761,000 for the $28-million general-fund budget.

A reduction in anticipated sales-tax revenue contributed to the higher projected deficit, O’Rourke said.

Mayor Donald L. Bone said the council would likely opt to continue to use reserves to balance the budget.

Despite the deficit, Bone said the city’s economic outlook this year is not as bleak as in past years.

“With a $28-million budget, $700,000 represents approximately 2 1/2% of that budget,” Bone said. “That 2 1/2% is real close. A lot of things could happen between now and the end of the year. We could see expenditures reduced and income increased. It is fair to say the budget is in the best shape it’s been in a lot of years.”

Gouged by state cutbacks in tax revenue, combined with the poor economy, the city has lost about $5.5 million since the 1989-90 fiscal year, O’Rourke said.

Cost-saving measures have been taken. Last year, for example, the city eliminated several jobs, imposed spending and hiring freezes, increased the hotel bed tax and did not offer raises to employees.

O’Rourke said other City Council actions to consolidate services, such as contracting animal control services with La Habra, will also save money. The city also has an agreement with La Palma, in which La Palma’s prisoners are taken to Buena Park’s jail instead of the County Jail. This makes money for Buena Park.

The city also is considering contracting fire protection services with the Orange County Fire Department, which could save about $500,000.