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ORANGE : Proposal to Cut Budget $1.5 Million

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City finance officials have drafted a $48.4-million budget for the coming fiscal year, which reduces departmental budgets by $1.45 million and spends $2.7 million of surplus from the 1994-95 budget.

The budget that will be presented to council members this afternoon includes no tax hikes, but does use onetime, cost-cutting steps, finance officials warned in a cover report. The city, for example, will suspend payments to an equipment replacement fund.

The biggest cut is actually a savings: A $10-million settlement with the county over expansion of the Theo Lacy Branch Jail will save police about $200,000 in booking fees, Morgan said.

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Public Works and Community Services departments also will feel large cuts, Morgan said.

The council study session begins at 4:30 p.m. in the Civic Center Plaza’s Weimar Room, 300 E. Chapman Ave.

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