CITY BUDGETS : Budget-Balancing Deadline Sends Some Cities Scurrying

In Santa Ana, a city financial squeeze means that 90 positions are being eliminated from the city payroll. But the budget for tiny Villa Park, Orange County’s smallest city, is rising 60% this year--thanks entirely to capital spending on road improvements. And in Irvine, last year’s deficit crisis is nearly forgotten and 38 employees will be added to the city payroll.

In most cities where spending is up, it is for increases in public safety personnel or road improvements. But whether the numbers are rising or falling, the story at city halls throughout Orange County is essentially the same: it is budget-balancing time.

The new fiscal year for California’s cities began Friday, and legally they were required to have had their budgets balanced and approved by the night before. However, several Orange County cities are still working with proposed budgets, including Fullerton, which is scheduled to approve its spending plan tonight.

Following is a city-by-city look at the budget picture in each of the county’s 27 cities. Mission Viejo

New City Starts Its First Full Fiscal Year

Orange County’s newest and 27th city, Mission Viejo, began its first full fiscal year Friday with a $22-million budget.

Of that amount, City Manager Bill Talley said, $12.8 million will go for basic city services such as police protection, and $1.2 million is earmarked for capital improvements. Another $1 million is reserved for the city’s road fund.

In addition, the City Council voted last week to place $7 million into general reserves, all of which is being held for capital improvements. Talley said that because the city is only 3 months old, many administrative positions have not been filled. Also, he said, the council has not yet identified sites for major capital improvements.

Revenue, he said, is being raised from typical municipal sources. Among them: property taxes, sales taxes, license fees and building permits.