HUNTINGTON BEACH : City May Be Facing $1.9-Million Deficit

The City Council heard Monday night that the troubled economy will result in a budget shortfall of about $1.9 million for the current fiscal year.

“We must do something about this very quickly,” City Administrator Michael T. Uberuaga said.

He recommended that the council consider cutting the budget of each city department by 2% to 3%. The Police Department would be exempted from that proposal, but the department has been overspending and would have to meet its budget. Uberuaga said the Police Department currently is running about 4.5% over budget, or about $1.2 million.

Police Chief Ronald E. Lowenberg told the council that the department is already taking steps to deal with the shortfall, including cutting back on overtime, leaving existing positions unfilled and possibly ending the city’s new experimental mounted patrol. That patrol started last summer, assigning two police sergeants and four police officers on horseback to patrol areas such as Central Park.

“This has been a very successful program, and I’d like to keep it, but we may have to eliminate it because of budget considerations,” Lowenberg said.

City Council members were pessimistic about the city’s finances for the rest of the fiscal year that ends June 30.

“We better start tightening our purse strings right now,” said Councilman Don MacAllister. “I just came back from a trip back East, and the situation looks bad. Thousands of people are being laid off across the country. We’re going to see less revenue (in city government) for next year than we received this year.”

Uberuaga told the council that one stroke of good fortune could save the city from a financial disaster this year. He said the city will receive a $5.7-million refund from the state because of an overpayment into the city employees retirement fund. He said this could more than absorb the $1.9-million shortfall, but he urged the city not to rely on “a onetime windfall” to solve budget problems.