Officials optimistic on 2008-09 budget

Despite the economic downturn, Costa Mesa officials have proposed a budget that anticipates about $14 million more in spending, but no significant service cuts.

The city plans to spend $144.6 million ($133.2 million in appropriations) in fiscal year 2008-2009, up from $130.8 million last year.

“Because we have always been fiscally conservative, we had savings in our budget this year and savings from our capital projects that allowed us to use that funding to balance next year’s budget,” said Finance Director Mark Pucket.

The city will have to dip into its reserves to cover the difference, but officials expect to maintain the city’s $14.125 million operating reserve.

Money left over from projects that were completed under budget helped the city increase its expenditures this year to keep pace with inflation despite a 3% decrease in sales tax revenues, according to Pucket.

City manager Allan Roeder called the budget balanced and said no new taxes or fees would be required to finance it.

“From my professional experience in preparing 22 consecutive Operating and Capital budgets for consideration by current and prior city councils, I would offer that adverse financial conditions often produce superior plans for managing the public financial resources,” Roeder said.

The budget covers all of the city’s operating expenses including police, firefighters, city administrators and improvements to roads and buildings.

The most notable new expenditure is about $2 million related to expenses for renovation of the remodeled police station, which includes construction of a new building scheduled to be opened in spring 2009, Pucket said.

City Council members will have a public study session to discuss the budget June 10.

The council members will vote on the budget June 17.

TOTAL APPROPRIATIONS

Numbers below show how the city’s $133,250,282 in appropriations will be divided.

Police – 34.1%

Fire – 16.64

Public services – 14.19

Administrative Services – 8.01

Capital Improvement – 7.94

Non-Departmental – 6.44

Development Services – 3.8

Recreation – 3.23

Finance – 2.18

Other – 2.01

Community Development – 1.46

ALAN BLANK may be reached at (714) 966-4623 or at alan.blank@latimes.com.