$1-Million Windfall Leads to Adjustments

Increased income from developer fees and sales taxes have helped bring about $1 million more into city coffers than originally projected for the fiscal year, according to city officials.

The City Council approved some minor changes to the budget recently and applauded the city’s financial stability.

“I’m very pleased with our financial prudence,” said Mayor Patricia C. Bates. “It’s good to be under budget.”

There were a few extra expenses, such as an additional $104,000 cost beyond what the city had set aside for its share of a countywide emergency radio system.

A slow construction market meant a $146,000 decrease in building and safety fees.

But those costs were more than matched by a $200,000 increase in sales tax revenue and about $324,000 in extra fees received when developers chose to pay cash in lieu of required street and park improvements.

Other additional income included $175,000 in interest from city investments and bank deposits.

Several projects already have been found for the windfall, including sprucing up parks and ball fields and paying for the expansion of the Mission Viejo Animal Shelter.

Despite the good fiscal news, Bates warned that the city must prepare for 1998, when Laguna Niguel will no longer receive a tax break granted new municipalities by the state.