HUNTINGTON BEACH : City Budget Balance Linked to Job Cuts

In his annual budget message, City Administrator Michael T. Uberuaga told the City Council this week that the municipal work force will have to shrink further if the 1995-96 general fund is to be balanced.

He proposed eliminating 34 positions, all but one of which are already vacant, thus reducing the city’s payroll to 1,070 full-time employees.

Since 1989, the city has reduced its full-time staff by 103 positions. Personnel costs for the year ahead will be $70 million, Uberuaga said.

At Monday’s council meeting, Uberuaga presented a $190.8-million budget that includes $95.9 million for general fund expenditures.

Costs for police and fire services account for half of the $96-million general fund budget, Uberuaga said.

Uberuaga said the city is feeling a financial squeeze for several reasons, among them Orange County’s December bankruptcy filing and Southern California’s sluggish economy.

“I don’t see a significant change in the recessionary mode,” he said. “I see us coming out of the recession very slowly.”

Repairs to the city’s aging infrastructure, including streets, sewers and the water system, continue to be deferred because of inadequate revenue, he said.

As part of the budget plan, the council will consider raising water rates to pay for much-needed maintenance and capital improvements to the water system.

A public hearing on the budget will be held Sept. 5, and a council study session is set for Sept. 11. The council will give final approval to the financial plan on Sept. 18.