Belt-tightening budget approved in Fountain Valley

The Fountain Valley City Council on Tuesday adopted a new budget that includes tighter restrictions on maintenance as the city continues to face financial challenges, officials said.

In banking on increased property taxes and transient occupancy taxes from city hotels, the 2016-17 budget anticipates a 1.97% increase in revenues compared with last year, according to a staff report.

But the city will still need to use $1.7 million of its general fund reserve to help balance the budget, the report says, after facing increased costs, “state takeaways” and the elimination several years ago of California’s redevelopment agencies, which gave local governments the ability to capture a greater share of property taxes.

The new budget does not provide for an increase in Police Department staffing, upgraded security cameras or park maintenance, although street and facility maintenance is included. Long-term challenges like the city’s structural deficit and adjustments to salaries to reflect an increasing minimum wage are also not included.

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FOR THE RECORD

11:13 a.m.: A previous version of this story incorrectly stated the new budget would not provide for an increase in Fire Department staffing. The new budget will not provide for Police Department staffing.

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Rehabilitation of the water reservoir at Cordata Park will rely on about $18.6 million from bonds, the city’s Measure M sales tax measure, gas tax revenue and a $1-million federal grant, according to the staff report.

City Manager Bob Hall said residents are likely to feel the cutbacks.

Fountain Valley welcomes community input on how to proceed with city services and help increase city revenue. A public workshop is scheduled for 5:30 p.m. Tuesday in council chambers, 10200 Slater Ave., to discuss a 20-year fiscal sustainability plan.