VILLA PARK : City Weighs Tapping $150,000 in Reserves

The city’s new fiscal year budget, scheduled for a formal vote June 28, calls for dipping into about $150,000 of the treasury’s $1.5 million in reserves.

City savings must be tapped if $200,000 of street improvement work is to be accomplished in 1994-95, the City Council said.

The council last week held a special session to discuss the proposed new budget.

The fiscal document forecasts $1,637,156 in income to the city and $1,788,839 in expenditures for the fiscal year that begins July 1.

During the meeting, City Manager Fred Maley told the council that despite the economic recession, Villa Park’s new budget forecasts about $50,000 more in income than in costs for normal expenses.

But Maley said that if the city is to proceed with a scheduled capital improvement, the reserves must be tapped.

The proposed improvement calls for a $200,000 widening of a narrow section of Cerro Villa Drive, east of Loma Street.

“We are spending savings,” said Maley. “There’s no doubt about that.”

Councilman Joseph S. Barsa said he thought the city should delay the widening of Cerro Villa Drive.

“This is something that could be put off,” he said. “We can’t deficit spend indefinitely.”

Barsa added that he is afraid the state Legislature in 1995 “is really going to hit on our (city) revenues.” Barsa noted that in the past the Legislature has taken away money from the cities.

Others on the council said they also dislike the prospect of tapping the city’s fiscal reserves. But they said the proposed $200,000 in street work should remain in the budget.

The street project can be canceled later in the year if more money problems arise, the council majority said.

In discussing the proposed budget, the council added an item that calls for $2,160 for police helicopter service during 1994-95.

The flights would be provided by a new consortium of helicopters from cities that already have them, along with the Orange County Sheriff’s Department.

Villa Park’s $2,160 cost would pay for 18 helicopter flights during the year.