Irvine : New Budget Avoids Cuts in City Services

The City Council has approved a $58.9-million operations budget for fiscal 1995-96 that will bring no cuts in city services, but questions remain about the long-term effects of potential losses from the collapse of Orange County’s investment pool.

Irvine had $208 million in the pool, more than any other city, when the county filed Dec. 6 for bankruptcy protection. The county has returned $170 million to the city, leaving Irvine $38 million short. But city officials say there will be no cuts in services or planned construction projects yet.

The city’s operations budget is $1.8 million higher than that for fiscal 1994-95 and includes money to hire three more police officers.

“I think there’s something out of focus,” resident Paul David Arthur told council members at Tuesday’s meeting. “You just dropped $62 million down the toilet during the past year.”

Mayor Michael Ward and council members Barry J. Hammond and Paula Werner have been targeted for recall because of their approval last July of a plan to borrow $62 million for an additional investment in the county pool.

But council members say any losses in investment pool funds can be made up by $45 million in the city’s “asset management” account, money that had been set aside for community development projects.

Ward said the city’s newly appointed investment committee is reviewing the long-term effects of potential investment pool losses and expects to issue a report within 60 days.