Newport tightens belt for 2003-04

June Casagrande

It’s that time again: Time for city leaders to play their annual game

of “Dodge the Sacramento Ax.” And, once again, it appears that city

financial planners have managed to put together a budget that covers

the city’s assets against worst-case state fiscal news.

“We don’t know what the state’s going to do to us yet, so we’ve

tried to be conservative in our predictions,” said Dennis Danner,

administrative services director.

Danner, who’s put together the city’s $165-million draft spending

plan for the 2003-04 fiscal year, said the state budget gap could hit

local governments in unforeseen ways. Besides likely cuts to the

vehicle license fee revenues that the state refunds to cities, the

state might also choose to tinker with sales taxes or property taxes

in an effort to solve California’s $35-billion deficit.

To play it safe, city staff members have chopped the general fund

capital improvement budget to about $1.5 million from the $4 million

to $5 million typical in previous years. This pot of money is used

for many wished-for improvements, such as upgrading city facilities,

drainage projects and some road projects not covered by the gas tax.

This year’s draft spending plan, $164,502,372 to be exact, is only

slightly greater than last year’s $158,930,430. But Danner warned

that this figure is not the best way to measure annual growth because

projects such as Balboa Village improvements that appear on several

years’ budgets blur the overall financial picture.

The operating budget, which excludes such projects and also

excludes debt-service expenditures, is projected at $129,292,181. Of

that, about $100 million is the general fund. Last year’s operating

budget was $124,451,944.

An even better snapshot of the city’s financial picture is seen in

revenue streams. This year, budgeted revenues are estimated to be

$143.5 million, up just $1 million estimated from last year at this

time.

“It’s pretty status quo,” Danner said. “There’s not a lot of new

stuff in there are no new programs.”

Councilman Don Webb, who serves on the city’s finance committee,

said he’s impressed by how well the city handles its finances during

tight times.

“I think our budget is very conservative and wise, yet it’s a

balanced budget,” Webb said. “Staff have done an excellent job.”

The council will examine the draft budget in their study session

on Tuesday. They are scheduled to consider adopting the budget at

their June 24 meeting.

* JUNE CASAGRANDE covers Newport Beach and John Wayne Airport. She

may be reached at (949) 574-4232 or by e-mail at

june.casagrande@latimes.com.