Update

* Follow-up on the news

ORANGE

Budget Provides for Early Retirements

The City Council has adopted what Mayor Joanne Coontz described as a “preliminary” budget of $48.4 million to keep the city functioning while officials reorganize City Hall.

The package includes $2 million in early retirement incentives to 84 of the city’s 640 employees. That is projected to save more than $700,000 in salaries and benefits, according to the budget report, and a hiring freeze will continue.

The spending plan for fiscal 1995-96 is less than 1% over that for the current year, but because of declining revenue, finance officials had to use $2.7 million of surplus funds to balance the budget, City Manager David F. Dixon said.

Department managers also cut $1.45 million from their budgets to keep total spending down.

Adjustments to the budget will be made over the next several months, officials said, as managers continue to restructure their departments. The plan calls for no new taxes or fees, and two city functions--police and library services--have more money in their budgets.

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COSTA MESA

Development Fees Discussion Tabled

The City Council tabled discussion of fees for the Metro Pointe development pending further study.

Arnel Development Co. of Costa Mesa has asked the council to consider a reduction in the amount it must pay the city to help pay for street maintenance around the shopping center proposed near South Coast Plaza. Arnel had initially agreed to pay $228 for each new trip the shopping center was expected to bring to the area. In May, the city reduced the amount to $200.

Council members instructed Costa Mesa’s traffic planners to research the issue of trip fees more thoroughly and said they will consider the matter again in August.

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LA HABRA

City Will Maintain 6% Utility Tax

By keeping its 6% utility tax intact, La Habra will not have to make drastic cuts in services to balance its budget, city officials said.

After three hearings at which officials and residents grappled with ways to balance the budget and still provide adequate police and fire protection, City Council members decided to keep the tax, despite a drive by some residents to rescind it.

Tax foes have been urging the council to repeal the levy, saying it is unfair because residents never voted on it. But city officials countered that eliminating the tax would force cuts in the police, fire, community and maintenance service departments, and park closures.

The tax, which took effect in May, 1993, raises $3.7 million a year.

After a recent budget hearing, Mayor Juan M. Garcia said the council may consider reducing the utility tax in the next few months if residents are willing for the city to delay projects such as street improvements.

Complied by LESLEY WRIGHT, HOPE HAMASHIGE, MIMI KO