Council looking at lean budget

Deirdre Newman

City leaders will get a glimpse today of what promises to be a lean

budget for the 2003-04 fiscal year.

During a study session, the City Council will begin considering

the city’s annual budget, which projects about $96 million in revenue

and about $105 million in expenditures. It calls for the gap to be

filled by savings.

The city’s fiscal troubles could ultimately mean further

reductions in revenue.

To steel itself against major cuts down the line because of the

state budget crisis, the budget forecasts revenue conservatively and

expenditures more liberally, Mayor Gary Monahan said.

But that doesn’t mean the city is spending more, Monahan was quick

to point out.

“I think the staff’s done an excellent job of tightening our belt

[considering] what’s going on with the state,” Monahan said. “This

does not take into account if the state cuts its budget $5 million in

a fund that affects us.”

In addition to the state’s projected $34-billion shortfall, some

challenges to the city’s financial outlook are a slowing economy,

rising costs of services and sluggish tourism.

Marc Puckett, city director of finance, said the key word of the

budget is “flat,” since there is almost no change from the previous

fiscal year. The only changes are four items that represent

uncontrollable costs.

Those items are: increased pension costs from losses in investment

earnings within the pension fund because of the recession, totaling

about $1.6 million; debt service payment for a new computer system

for the police department, totaling about $640,000; complying with

new storm water runoff requirements from the federal government,

totaling about $1 million; and costs for fixing a fuel leak at one of

the fire stations for about $300,000.

The preliminary budget allows the city to maintain programs and

services at existing levels. It estimates the city will take in about

$38 million in sales tax and about $15 million in property tax.

Items discussed during today’s council meeting will include: the

Planning Commission’s comments on the proposed Capital Improvement

Program; proposed additional full-time positions; the general fund

operating reserve; community objectives; support to commissions and

committees; Costa Mesa Beautiful/Costa Mesa Safe; review of the

city’s investment policy; and Westside Costa Mesa improvements.

The council will also focus on the $1 million in revenue that has

not been allocated yet, Monahan said.

The discussion begins after a special Redevelopment Agency

meeting, which is set for 2 p.m. in City Hall, Conference Room 1A.

“I think what we’ll see [today] is a discussion of some

priorities,” Monahan said. “There’s not a lot of maneuvering room.”

Monahan will also bring up a formal discussion on capping council

members’ expenditures.

* DEIRDRE NEWMAN covers Costa Mesa and may be reached at (949)

574-4221 or by e-mail at [email protected].