ORANGE : Hiring Freeze Helps Balance City Budget

The City Council this week approved a $79-million spending plan for 1991-92 that includes a yearlong hiring freeze and increases in development fees for parks, fire and police facilities.

City Council members voted 5 to 0 in favor of City Manager Ron L. Thompson’s budget package, which projects modest economic growth and recommends using nearly $2 million in reserve funds to avoid cuts in staff and services.

The council also voted 4 to 1 to approve higher water rates and increases in fees that residents pay for some library, recreation, administration and other city services.

Councilman William G. Steiner opposed the water rate hike and fee increases.

Under the water rate plan, which will go into effect July 1, bimonthly bills will increase by about $1.30 for customers who use minimal amounts of water and about $4.40 for average water users.

The water department, seeking to close a $1.4-million budget deficit, had requested an 18% increase in water rates last month.

As part of the budget process, department officials offered the council three rate alternatives, and the council chose a formula that will cost conservative water users about 9% more bimonthly while average customers will see a 15% increase.

Water department officials told the council that despite the increases, water rates in Orange still fall below those of many neighboring cities.

Steiner called the rate increases “excessive” and suggested that instead of charging residents higher fees, water officials should tap the department’s reserve budget to close its deficit.

Park development fees will go up 40%, an increase that means developers will pay $650 more for each single-family home, and $450 for each apartment or condominium.

The fees developers pay for fire and police facilities will be raised 3.5%, meaning developers will pay up to $23 more per residential unit for fire facilities and a new rate of about $354 per unit for police facilities.

The council also approved a $36-million capital improvements plan, which includes $2 million for an earthquake safety loan program, $2.3 million for Civic Center remodeling and $545,000 for new gymnasiums in W.O. Hart and El Camino parks.

However, library advocates such as Tom Saenz, president of the city’s library board of trustees, pointed out that the new budget contains no funds for a badly needed new main library. City Manager Thompson told the council it could be five to 10 years before the library is built.