MISSION VIEJO : City Council Passes ‘Austere’ Budget

A “worst-case” $33-million budget that sets aside $3.4 million in case the state Legislature drastically reduces revenue for local governments was passed by the City Council.

However, City Manager Fred Sorsabel told the council Monday that indications are that Mission Viejo will lose about $1 million rather than the earlier predicted $3.4 million as the state takes more local property tax revenue to balance its budget.

The city’s 1993-94 fiscal year budget was described by one council member as austere, but not devastating. The budget carries some cutbacks, such as a $200,000 reduction for park maintenance.

No new employees will be hired, although some part-time slots are being set aside for animal control and clerical help.

“We had to make some major cuts,” Councilwoman Susan Withrow said. But compared to cities forced to lay off employees, “we’re still fortunate being a new city.”

Incorporated five years ago, Mission Viejo still receives a higher tax revenue rate given to new cities under state law.

At one time, Mission Viejo’s cash reserves topped $20 million. After making several land purchases for public facilities such as a library, the city’s reserve for 1993-94 is still about $12 million.

Even if the state budget treats cities kindly, Sorsabal recommended that the unused portion of the $3.4 million be left in reserve.

State legislators, Sorsabal said, haven’t looked at state finances long enough to recommend steps that will stabilize the budget beyond the coming fiscal year.

Only one citizen spoke during the public hearing on the budget, after which the council approved the spending plan by a 5-0 vote. Larry Gilbert suggested that the council consider imposing a fee on Mission Viejo merchants.

Earlier in the meeting, Gilbert also said the council wasted taxpayer money on several capital expenditures, including purchasing the library site for $2.4 million and approving construction of an animal shelter for about $2 million.