LOS ALAMITOS : Council Optimistic as It Passes Budget

The City Council has approved a $9.5-million budget for fiscal year 1994-95 that will leave about $1.2 million in the city’s treasury at the end of the year.

In unanimously approving the budget Monday, council members said the city is in sound financial health, their optimism buoyed by projected increases in property and sales taxes for the first time in three years.

The budget contains a $5.9-million spending plan for operations and $2.7 million for capital improvements, such as bridge seismic retrofits, street repairs and park upgrades.

However, city officials made no provision for the possibility that the state would take some of the city’s property tax income to cover what Councilman Ronald Bates said is a potential $10-billion state deficit.

“As of right now, we’re in good condition, but all bets are off in November or December when the state finds itself in the red,” he said.

During the 1993-94 fiscal year, the city lost $110,000 in property taxes to the state, officials said.

“We’re very cautious,” City Manager Robert C. Dunek said.

“We did not balance this budget with a shift in mind. We’ll have to evaluate our budget once the state deals with its deficit.”

Sales tax income for the coming fiscal year is projected at $2.04 million, up from $1.8 million in fiscal year 1993-94. Property taxes are projected at $934,000, up about $70,000,

Total revenue for fiscal year 1994-95 is projected at $6.6 million, an increase of 1.9% from the last fiscal year.

With expenses pegged at $5.9 million, the general fund balance at the end of the fiscal year is projected at $1.2 million, plus transfers from other funds, Dunek said.

A hiring freeze has been lifted, and the city has begun to fill positions that have been vacant for a while. A police officer, a city planner and neighborhood preservation officer have been hired, Dunek said.

He said that contract negotiations will begin next month with the clerical and maintenance workers groups.

If those salaries increase, Dunek said, “we could accommodate that” by using money from the $1.2 million in the treasury and other sources.