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LCF catches a $450K break

July 31, 2003

Josh Kleinbaum

When preparing its budget for the current fiscal year, the city of La

Canada Flintridge braced for the worst.

On Tuesday, the city got some good news, if you can call losing

$250,000 good news.

When the state Assembly approved a budget Tuesday after a marathon

session, it stripped some money from local governments to help meet

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its own deficit, but nowhere near the worst-case scenario for which

the city prepared.

According to City Manager Mark Alexander, the state budget strips

the city of about $250,000 of income in vehicle-license fees, much

less than the $700,000 the city had prepared for in its reduction

budget. The state legislature didn't take away the city's tax income,

leaving La Canada Flintridge in better position than officials had

anticipated.

"We're still disappointed that the vehicle-license fee was

impacted, because the city takes the position that vehicle-license

fee money [is] local revenue and shouldn't be used to bail out the

state," Alexander said.

He cautioned that the end result could be worse for the city,

depending on what the state does with its Community Oriented Policing

and Problem Solving program. In the past, the city has received

$100,000 for the COPPS program, but it might not get it this year.

Alexander also said the city lost some money from sales tax, but

it is making it up with increased property tax.

At its July 27 meeting, the city approved two budgets -- one

standard budget and one reduction budget. The reduction budget

accounted for nearly $700,000 in lost revenue due to the state budget

crisis. The reductions ranged from cutting an intern to save $19,050

to reducing expenditures on resurfacing streets by $100,000.

Now, the council must look at the two budgets and find some middle

ground, deciding which programs to implement.

"I have a feeling that we're probably going to be conservative

about the [money] spent," Councilman Dave Spence said. "I have a

feeling that the mayor will probably say to Mark Alexander, if an

issue is significant, bring that to us, but otherwise let's pretty

much operate in the most conservative manner."

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