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Service Cuts Seen if Levy Isn’t Hiked

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City officials say residents have a clear-cut choice: vote for a higher surcharge on utility bills or cope with cuts in municipal services such as public works projects and police protection.

Buena Park is beginning fiscal 1996-97 with a budget deficit, and “this is not a one-time blip, this is a structural problem,” Councilman Donald L. Bone said. “There is no easy answer. We either raise revenues or cut costs. Either one will impact residents.”

City Manager Kevin O’Rourke said that, without the higher levy, residents can expect as much as $3 million worth of cuts in municipal services in the next two or three years.

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At this week’s council meeting, city officials argued the case for raising the levy on utility bills to 5% from the current 3% and agreed to seek public comment at a hearing July 16. The council will then vote on whether to put the issue on the November ballot.

Finance Director Greg Beaubien estimated that the city, which takes in $1.8 million annually from the utility fee, could raise another $1.2 million if the rate goes up to 5%.

Any increase in the surcharge must be approved by the voters, and four of the five council members must agree to put the issue on the ballot, City Attorney James L. Markman said.

Councilman Don R. Griffin has said he does not favor putting the increase on the ballot. Mayor Patsy Marshall said she is undecided.

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