Santa Clarita / Antelope Valley : Lancaster Cuts Homeless Shelter Funding by One-Fourth : Budget: Spending on other services will increase 2.8% under the 1995-96 budget approved by the City Council.

The Lancaster Community Shelter will have its city funding slashed nearly 25%, but spending for most other municipal services will grow modestly in the coming year under a budget adopted by the Lancaster City Council.

In its unanimous approval Monday of the 1995-96 budget, which covers the fiscal year beginning July 1, the Lancaster City Council reduced annual funding for the homeless shelter from $117,000 to $90,000.

The budget initially proposed slashing the shelter’s funding to just $60,000 in the coming year, but the council agreed to increase the allocation during a budget workshop last week.

Unless the shelter, which is operated by Catholic Charities, finds alternative revenue sources to make up for the money cut by the city, it could lose another $27,000 in federal matching funds, according to Allan Kurki, head of the shelter’s citizens advisory board.

Kurki said the shelter will seek local support and grants to make up for the loss.

In addition to scaling back funding, the council also decided it may find a different agency to run the shelter. The city will seek proposals later this year from organizations interested in operating the facility.

Despite a cutback in the shelter’s funding, the city’s $33.6-million operating budget for 1995-96 represents a modest 2.8% increase over the current year’s spending. City Manager Jim Gilley said the budget reflects a city continuing to ease out of the recession, which forced municipal layoffs and other spending cuts.

In the coming year, the city will be able to avoid staff reductions and has even budgeted for three more employees than it did at this time last year.

In addition, the city has earmarked $1 million to begin construction of a 169-acre soccer complex in east Lancaster and will increase law enforcement spending.

Technology upgrades are also planned in the coming year as the city expects to make changes that will enable residents and businesses to access City Council agendas and staff reports via computer.

Beyond the General Fund, Lancaster will spend another $29.6 million on capital projects, with the bulk of the funds going to street improvements such as widening, repaving and traffic signal upgrades.

Sitting as the Redevelopment Agency, the council on Monday also approved the $65.6-million agency budget.

Council members Michael Singer and Deborah Shelton will hold a community budget review at 7 p.m. next Monday at the City Hall emergency operations center to give residents an opportunity to discuss the spending plan.