COSTA MESA : Council Takes Cut in Trimming Budget

Facing an uncertain financial future, the City Council this week sliced thousands of dollars from the city’s $68-million budget for 1992-93, stripping money from their own salaries, requesting that city employees put off a raise and cutting funds from various programs.

The council spent several hours paring the budget in anticipation of state budget cuts that could greatly impact the city’s balance sheets.

Spending on arts programs and consultants was put on hold by the council until the state passes its budget sometime later this summer.

“It is hard for me to ask the employees to take pay cuts when we are spending money on Easter egg hunts,” said Councilwoman Sandra L. Genis.

Council members cut their own salaries and those of planning and traffic commissioners by 25%. Food and lodging for every department was slashed by 25%, and grad night funding at Newport Harbor High was cut in half.

The council also asked that city employees forgo a contracted raise, which would translate to about $750,000 in savings during the next year. Although the council has no authority to break the contract, they want the groups to consider it, said Councilman Joe Erickson, who suggested the proposal.

One bright spot in the budget was the allocation of more than $8 million for needed street work and other infrastructure repairs.

The cuts made Monday represent only the latest round of belt-tightening over the last few years to help keep the city out of the red. A hiring freeze was adopted last July, and since then more than 30 positions have been left unfilled or eliminated through attrition.

Like most cities in Orange County, Costa Mesa is suffering from plummeting revenue from sales taxes and other sources because of the recession.

But the real test, officials admit, is yet to come. Looming state budget proposals could siphon more than $3 million from the city. Under that scenario, officials fear, layoffs would be impossible to avoid.

To help counter this, the council will consider raising the cost of building permits and other fees. A decision on the fees is expected within the next few weeks.