City manager unveils proposed budget

Mathis Winkler

NEWPORT BEACH -- The details might still be under discussion. But one

thing’s for sure about the city’s budget for the 2001-2002 fiscal year,

says City Manager Homer Bludau: It will be balanced.

Giving a sneak preview of his proposed $135.5-million budget Wednesday

to the West Newport Beach Assn., Bludau said $89.2 million would go to

cover general fund expenditures, such as police, fire and marine services

and other costs related to running Newport Beach’s government.

Capital improvement projects, such as new parks and physical changes

to the city’s roads and sewers, would take up $34.8 million, with the

rest of the money going to pay for water and sewage bills, Bludau said.

During budget preparations, which began late last year, city

departments were given the task of not increasing operating expenses

while finding ways to maintain the city’s level of service, Bludau said.

The increase of about $5 million compared to last year’s budget comes

from higher salaries, among other things, as well as higher capital

projects expenditures, Dennis Danner, the city’s administrative services

director, said Thursday.

The city is expected to take in $24.3 million in property taxes, $21

million in sales taxes and $7.6 million in hotel taxes, Bludau said.

Overall, Newport Beach has more than 200 sources of revenue, with only a

handful bringing in more than $4 million.

Bludau said that with $27.4 million, the police department will head

the list of big budget items, followed by public works with $19.3

million, fire services with $18.8 million and general services with $13.4

million.

Adding 14 new employees to the city’s payrolls will bump the total to

742, Bludau said, adding that the city was continuing to replenish its

work force after laying off many employees during the recession in the

early 1990s.

California’s ongoing energy crisis “is going to be worse than most

people think,” Bludau said, adding that the problem would affect the

city’s budget as well.

With 50% of Newport Beach’s energy bills coming from pumping water to

residents, encouraging everyone to cut down on water consumption is one

way to protect city coffers, Bludau said. He added that another 25% of

energy costs come from street lights, which would not be shut down for

safety reasons.

He added that city officials have begun to save power by shutting off

computers and turning off lights, resulting in a 5% to 7% reduction in

energy use.

Council members are expected to adopt the budget after three study

sessions and several public hearings on June 28. The new fiscal year

begins July 1.

Mayor Gary Adams and Councilman Gary Proctor, who represents West

Newport Beach, also attended the forum and addressed other city issues as

well as the extension of flight caps for John Wayne Airport and plans for

an airport at El Toro.

FYI

The meeting will be rebroadcast on the city’s public access channels

as follows: April 30, May 2, May 7 and May 10 at 9 p.m. and May 3 and May

10 at 4 p.m.