COSTA MESA : Council OKs Cuts to Balance Budget

After a year of belt-tightening in city departments because of dwindling sales tax revenue, the City Council this week approved a wide range of cuts to balance the 1992-93 budget.

The city projects a slight increase in revenue in fiscal 1992 from the projected $54 million for the current fiscal year. However, the city’s financial picture will remain troubled because the $54-million projection for fiscal 1991 is $3.7 million lower than the city had anticipated when it adopted this year’s budget last summer.

The city has attempted to compensate for lower-than-expected income from hotel and sales taxes by decreasing spending.

“The good news is . . . we have been very successful in curtailing general fund expenditures,” said Finance Director Susan L. Temple.

With a hiring freeze in effect since last July and each department cutting expenses, the city is now facing a net revenue deficit of $850,275, said Temple, who will update the council in April on city revenues and expenses.

The plan approved by the council early Tuesday morning will require a 6.9% cut in all departments.

City officials said most of the cuts will not be noticed by the public immediately. For example, the Police Department’s two-officer gang detail will not be funded by the general fund, but instead will receive its allocation from the Asset Forfeiture Fund, which is funded through property seized in drug arrests. The team will continue to operate as before.

However, changes in park and recreation programs might be more evident. One of the programs cut for next year is the coed softball league, which will save the Community Services Department $11,600.

“It was expensive and we didn’t have that many people signing up,” said Community Services Project Manager Keith Van Holt. “When we’re looking at cuts, we’re looking at what will affect the least amount of people.”

Van Holt’s department proposed closing the swimming pool at Lions Park during the off-season to save a projected $54,000. But after a few residents asked that the program be spared, the council delayed approving that cut while city staff studies it further.

Out of concern about liability, the council also put off deciding on a recommendation to turn off every other street light on some major city streets for a savings of $70,000. It also asked the staff for more information before it considers cutting by half an hour the staffing of children’s after-school programs in the parks.

Grants to cultural arts groups were slashed in half from the $175,000 allocated this year, and funding to civic groups from advertising and promotional grants will also be reduced.

“We have not yet funded any ‘Grad Nights,’ and we still have $20,000 left in there for that purpose,” Mayor Mary Hornbuckle said. The city has helped fund the events by Costa Mesa and Estancia high schools to reduce drinking and driving on graduation nights.

Hornbuckle said the council wants to continue funding the Costa Mesa Job Center, which was given a $48,000 boost last summer.

“It is a benefit to the community in that these people seeking work are not spread all over the city and it makes it easier for the employers to have one place to go to,” she said.

Suggestions to cut council members’ salaries by 25% and to freeze management salaries were not adopted but may be considered later if revenues continue to decline.