ORANGE : City Closes Deficit in 1993-94 Budget

The City Council closed a troublesome deficit in its $47-million 1993-94 budget last week, chiefly by tapping into water utility revenues and shifting selected insurance monies to the general fund.

The city had been operating with a $2.1-million shortfall since June.

“We can breathe again,” said Mayor Gene Beyer.

The council authorized transferring $637,000 in interest from the workers’ compensation and liability fund to the city’s general fund. Also, the council approved “water-in-lieu” charges that will contribute an additional $627,000 to the city treasury.

The water-in-lieu charges enable the city to tax the local public water utility as if it were a private company, said city officials.

City coffers were also enriched by stretching out payments to retirement plans, increasing some recreation fees and the savings gleaned from a new two-year contract with city firefighters.

Only the water-in-lieu charges drew an objection from a council member. Councilman Mark Murphy voted against the water fees, arguing that residents will eventually have to pay higher water rates.

While conceding that “there is no free lunch,” Assistant City Manager Jim Evans said that hikes in water rates would be imposed but not for two more years.

Evans added that Orange’s water rates are the third-lowest in the county.

The council said it would re-evaluate the water charges on an annual basis.