Budget weathers slow economy

June Casagrande

NEWPORT BEACH -- The proposed $142.1-million city budget could pass

with little or no controversy -- a rarity in most years, not to mention

one in which times are tough.

Despite fears that a slow economy could mean cutbacks, city staff have

managed to come up with a status quo spending plan. Shrinking sales tax

revenues have been offset in part by about $4.6 million in property taxes

from the newly annexed Newport Coast. And, to play it safe, staff decided

not to count on the roughly $2.7 million it was slated to receive from

the state for vehicle license fees.

At the end of the balance sheet, the $142.1-million spending plan is

enough over last year’s $136-million budget to cover some increased

expenses without having to cut programs.

“It was designed as a status quo budget with some increases for

salaries for police and fire,” Mayor Tod Ridgeway said. “I don’t know of

any controversy over the budget.”

Council members still have to hammer out spending for improvement

projects within their own districts, such as the Balboa Village

renovation and the Lido Isle bridge. But because there have been no

cutbacks, most such projects will move ahead as originally planned. About

$32 million is set aside for such projects.

For the second time this year, staff members will list their top

priorities and submit them to the City Council. This approach, devised by

City Manager Homer Bludau, is designed to help council members benefit

from some of the day-to-day issues encountered by staff.

Their first priority, one City Council members have also endorsed, is

extending the John Wayne Airport Settlement Agreement. Completing the

general plan update is second, followed by the need to prepare a local

coastal plan.

Staff members have also stated that developing a citywide system to

manage traffic signals, improving water quality and developing a

comprehensive plan for existing city buildings also rank high on their

list.

“These are just the staff’s priorities, but hopefully the council will

feel good about them, too,” Bludau said.

Council members will make their final revisions to the budget tonight.

On June 25, they will have their final vote on the budget.

* June Casagrande covers Newport Beach. She may be reached at (949)

574-4232 or by e-mail at o7 june.casagrande@latimes.comf7 .