HUNTINGTON BEACH : City Told Smaller Deficit Is Expected

The city’s budget for the current fiscal year has improved, but a shortfall is still predicted, City Administrator Michael T. Uberuaga has informed the City Council.

In his weekly report to the council, Uberuaga said that the city now faces about $100,000 less in red ink than predicted a few months ago.

The former forecast was for a deficit of $149,015 by June 30, the end of the fiscal year. Uberuaga said that because of some spending reductions by the city and some improvements in the overall economy, the city now faces a $53,972 loss.

“Additional expenditure reductions will be implemented,” Uberuaga said.

Uberuaga said that in many revenue-producing areas, income to the city is falling shorter than anticipated. “The latest reductions in revenue are from the state motor vehicle license fee (returns) to the city, which are down 2.7% from what the state projected in April of 1993,” Uberuaga said.

Uberuaga also said the city has received less income from building permits than expected in the first three months of 1994. He said this resulted from a lag in construction.

But the city can expect increased revenue from property taxes between now and the end of the fiscal year. Uberuaga said the city now expects to get about $400,000 more in property taxes this year than anticipated, largely due to fewer tax delinquencies.