Fiscal Reform to Be Proposed by Mayor

When Mayor John W. Hedges delivers the State of the City address tonight at the Hyatt Newporter, he will sound a call for fiscal reform that he hopes will help Newport Beach position itself as a model for economic efficiency.

“Some of the ideas are likely to be controversial,” said Hedges, who was unanimously reelected by the City Council to a second one-year term last fall.

Previewing tonight’s speech, Hedges said he will propose that the City Council decide which city services should be supported by general tax revenue and which should be supported by user fees.

The mayor’s 2 1/2-year plan is designed to enhance municipal revenue while reducing expenditures.

Unlike police patrol, fire suppression, and capital and road improvements, which serve the city’s entire population, the mayor said areas like the city’s recreational services, which receive large municipal subsidies, should be self-supporting.

“My opinion is that something that serves a small segment of the community should be supported by the users” with fees, he said.

Hedges said he also wants to examine city-run enterprises such as its oil operations to determine whether they are bringing in enough money or should be sold.

Hedges also plans to propose:

* A “layman’s version to the city budget,” which would make a user-friendly budget packet so that everyone can read the “bottom line.”

* Expansion of the city’s information network, including making city permits available over the Internet.

* Updating the City Charter--Newport Beach’s constitution--which was last revised in 1958.