Big Shortfall Foreseen for Lawndale’s Budget

Lawndale may have to make significant cuts in services to balance its budget for the coming fiscal year, officials said this week.

The city had an initial projected shortfall of about $1.1 million in its 1988-89 budget, according to a report to be presented to the City Council tonight by acting City Manager Paula J. Cone.

In an interview, Cone said initial funding requests of $6.2 million represented city departments’ most optimistic and expansive plans, but exceeded projected revenues by $1,156,210. Three rounds of discussions among city staff have reduced the projected shortfall to $359,910, Cone said. The savings were achieved by cuts in such things as sidewalk and curb construction and traffic enforcement.

Personnel Costs

Much of the gap between projected expenses and revenues is because of personnel costs, including a 5% cost-of-living raise for city employees and a 6% increase for county sheriff’s services, she said. About $130,000 of the shortfall is from lost interest on an estimated $1.68 million that the city lost last year in a speculative securities investment, Cone said.

Mayor Sarann Kruse said in an interview Tuesday that she had not reviewed the report in detail, but that the city may have to make substantial cuts and sell some surplus land to balance its budget.

“We are going to have some tough decisions to make this year,” she said.

Councilman Larry Rudolph, who ran against Kruse for mayor in April, began reviewing the budget report Tuesday and called it a “disaster.” He said further cuts will have to be made beyond those the staff has suggested, but he wanted to study the budget before making specific proposals.

Will Refund Stipend

Newly elected Councilwoman Carol Norman said she hopes that cost-cutting measures can be spread throughout city departments so individual programs would not have to bear the brunt. She said she will refund to the city her council stipend of $150 a month as a gesture of support for Lawndale’s economy measures.

According to Cone’s eight-page report, the staff’s first round of cuts totaled $408,000, which included $65,000 in consulting fees for updating the city’s general plan, $65,000 for proposed increases in building inspection services and $60,000 for sidewalk and curb construction and repair.

The second round totaled $217,340 and included cuts of $74,000 for general and traffic law enforcement, $30,000 for a sheriff’s foot patrol and $15,000 for grounds patrol by a private security firm.

A third round reduced the shortfall to $359,910, partly through increased revenues and a freeze on hiring.

Cone listed other expenses that have been approved by the City Council but could be re-evaluated in light of the budget problems. These include:

$45,000 for the Chamber of Commerce.

$30,000 for the sheriff’s foot patrol.

$80,000 for the 5% cost-of-living increase granted to city employees. Any reduction in this would require negotiations with city unions, however.

$28,380 for trips and conferences.

$15,000 for training expenses.

$10,000 for reimbursement of employees’ educational expenses. Reductions in this also would require negotiations with unions.

Cone also listed possible ways of increasing revenues, such as raising fees for city services and increasing fines for violations of city laws. Increasing business license and hotel taxes would require voter approval, she said.

Cone said her report is intended as a starting point to help the city in its budget deliberations. She said she will ask the council to schedule a budget workshop next week.