DANA POINT : Acquisition Pushes Budget to Record

The City Council has unanimously approved a $15-million budget for the coming fiscal year, the largest spending plan in the city’s six-year history.

The budget is more than $2 million higher than the 1993-94 budget because the city has acquired the former Capistrano Bay Park and Recreation District, said Rita Geldert, the city’s director of finance and administration.

Until dissolving last December because of cuts in state funding, the independent district had maintained all city parks and run the city’s recreation programs for 28 years.

“You pick up more income by absorbing the park district, but you also pick up a heck of a lot more expense,” Councilman Mike Eggers said after the spending plan was approved Tuesday night.

Geldert cautiously labeled the city’s financial situation “healthy.”

“Right now we are healthy, but the main concern is the announcement made from the governor’s office of the potential for additional property tax reductions,” Geldert said. “That is certainly a concern in adopting a budget, knowing we may have to come back with some modifications.”

Once again, the police service contract with the Orange County Sheriff’s Department makes up the city’s largest expenditure at $4.2 million, up about $300,000 from last year, Geldert said. The higher cost comes despite the council’s decision not to pay the estimated $31,200 for helicopter service for the year.

The second costliest budget item is public works, including solid waste, parks and park maintenance, engineering and street repair, Geldert said. The cost of the various public works programs is estimated at $2.4 million.

As is usual in Dana Point, bed taxes make up the largest share of the city’s revenue, Geldert said. An estimated $3.6 million is expected to be generated from the city’s hotels and motels, about the same amount the city received this year.

“We always try to be conservative with our estimates, but we are figuring on about the same amount as it worked out to this year,” Geldert said. Among the leading generators of the bed tax is the Ritz-Carlton hotel, which “assists us quite a bit,” Geldert said.

The next highest revenue sources are property taxes and sales taxes, which are projected to be $2.3 million and $2.25 million, respectively, Geldert said.

The city also has about $15 million in a variety of reserve accounts, including about $3.4 million put away for a civic center, Geldert said.

Councilman William L. Ossenmacher called it a “reasonable budget” but said he would like to see lower personnel costs. Ossenmacher said the city should reduce spending for car allowances to department heads and cut the city’s contribution to employee retirement funds.

“This city has been extremely generous with its employees,” Ossenmacher said.