Revenues Projected Down by 2 Percent in Proposed City Budget

The city’s revenues will shrink next year by 2 percent, with departments continuing to “hold the line” as the financial outlook for San Juan Capistrano improves modestly.

These projections are included in the fiscal year 2011-12 budget proposed by staffers. The City Council will take its first look at the draft budget during its Tuesday night meeting.

The budget is based on projections that revenues will decline in fiscal year 2011-12 by $4 million. The hit is a result losing two onetime grants totaling $833,000, as well as a $3.2-million payment to with the Scalzo Family Trust.

“Although a balanced budget is presented, contingency reserves are within guideline and funding is identified for capital costs if necessary, the city needs to continue to work diligently to improve its financial position looking forward," Cindy Russell, San Juan's chief financial officer, wrote in a report.

Russell said that although there are signs that nation's economy is turning around, California's remains in a lull with a stagnant housing market. San Juan's economy, she said, is expected to pick up in the next year with the establishment of new auto dealers and at least one hotel.

The draft budget is subject to change, pending recommendations from the public and the City Council.

Also on Tuesday night's agenda, the council will:

• Look at three options for a location for funded by the. The previously proposed site near the may be considered too small and too dangerous located along a busy street.
• Consider repealing its declaration of a "Stage 1" water shortage. Subsequent to state and regional declarations of water shortages, the City Council in 2009 began requiring a 5 percent reduction in consumptions in San Juan.
• Act on a recommendation from staffers that it approve a $88,360-contract with Keeton Kreitzer Consulting to conduct documentation of environmental studies associated with the west of Del Obispo Street—a requirement of its settlement agreement with the Scalzo Family Trust.
• Vote on a $31,500 contract with Pyro Spectaculars Inc. for the annual fireworks display at the Sports Park.
• Decide whether to purchase three trucks from Tuttle-Click's Capistrano Ford for a total of $61,874.55. Staffers are recommending the new trucks replace older six vehicles that will be sold at auction for as much as $4,000 each.

The meeting starts at 6 p.m. in City Hall, 32400 Paseo Adelanto. To read the agenda in its entirety, click here.