Mission Viejo’s proposed two-year budget continues existing City services, includes $14 million in road improvements and maintains $25 million in reserves. The City Manager’s proposed 2011-13 operating and capital budget will be presented to the City Council on Monday. A budget workshop follows on Wednesday, June 15, and the council is expected to adopt the final budget on Tuesday, July 5.
By carefully examining the budget and trimming personnel costs and operating expenses, City staff has been able to present a balanced 2-year budget without having to tap into discretionary reserves or without cuts to police and essential services that residents and businesses have come to expect in this City, which continues to be one of the safest cities in the nation. Mission Viejo’s discretionary and total City reserves are above the council’s target level of 50 percent of General Fund reserves – roughly $25 million.
City staff balanced the budget through a variety of means including eliminating 4.75 more full-time positions in FY 2011/2012 to the tune of $540,000 in savings. That’s on top of the 12 positions that have been cut over the past three years – without any layoffs – which has saved the City $1 million annually. A total of eight positions are proposed to be eliminated over the next two years, and employees will pay a greater share of their retirement costs beginning January 2012. New hires will be part of a lower, second tier retirement program starting next month.
The proposed 2011-13 budget reduces the 2011-12 operating budget by $1.8 million compared to the 2010-11 budget. In addition, year-end revenues are expected to be between $500,000 and $700,000 above budgeted levels for fiscal year 2010/11. These year-end budget savings will be used to replace City assets such as computers, vehicles and recreational and fitness equipment.
The budget also includes $6 million in capital improvement project appropriations for fiscal year 2011/12 and an additional $8,775,755 for the following fiscal year.
Despite an economy struggling to emerge from the worst recession in more than 70 years, the City successfully prepared the 2011-2013 budget and met its goal of continuing to provide core municipal services to residents. The Police Services contract is fully funded and the Mission Viejo Library, Norman P. Murray Community and Senior Center and the recreation and tennis centers will all maintain their current hours of operation. Road improvement projects in the Capital Improvement Program will total $14.1 million over the next two years.
The City Council meets at 6 p.m. in the Council Chamber at City Hall, 200 Civic Center. To see the agenda, visit the City’s website at www.cityofmissionviejo.org.