Surplus Projected in New City Budget

After several years of budgets that included deficit spending and cutbacks, City Council members face a more pleasant outlook tonight when they consider next year’s municipal finance plan, which projects a slight surplus.

“It’s a watershed year for us,” City Manager Bill Smith said Monday. “We have turned the corner and are seeing the fruits of a lot of hard work.”

The projected $28-million general fund budget, which may be adopted after a public hearing tonight, includes a $65,000 surplus, the first since 1990, Smith said.

General fund revenue is estimated about 3% higher than in the preceding year, in part because of an expected 10% increase in sales tax revenue.

“It’s a much brighter picture than we’ve had in the past five years,” Smith said.

In recent years Westminster has had to cope with dwindling state funds and lower revenue from property taxes, as well as unexpected expenses.

In 1995, city officials were able to wipe out a $1.9-million deficit. That budget was balanced by a series of steps that included an increase in business license fees and water rates, contracting for fire services with the Orange County Fire Authority for a $1.8-million annual savings, and maintaining a hiring freeze for all employees except police officers.

The city is not out of the woods yet, Smith said. Its aging water system, for example, needs millions of dollars worth of repairs.

In addition, the budget proposed for fiscal 1996-97 does not include funds for any major street repairs, although the city has identified $5-million worth of high-priority projects.