Unrestrained City Spending Continues
How Will Next Binge be Financed?

Fiscal Year 2011 (July 1, 2010 - June 30, 2011) ended with over $700,000 of spending beyond the approved budget, digging into city reserves.

Early extra-budget spending this year appears to be financed from Sheriff Dept cuts.

The Council approved the current year budget in June with a $110,000 deficit and instruction to the City Manager to negotiate approximately $150,000 from the Sheriff Department's approximately $841,000 Contract.

The August 11th City Council meeting Staff Report on Budget adjustments reported that the Mayor and City Manager had negotiated $175,000 in cuts to the Sheriff Budget.

There was no mention of a specific service cut, however other Los Angeles County Sheriff Department contract cities (see Palos Verdes) which make their contracts public shows that a 40 hour Sheriff Deputy unit, which the City of La Habra Heights has used in past contracts, costs approximately $250,000.
In this scenario, the $175,000 cut to the Sheriff contract works out to a reduction of about 5.6 hours per weekday in an in-city Sheriff deputy.

The August Staff Report also states that State Law Enforcement funds were restored in a State manuever that brings $78,300 to the City.

The $175,000 Sheriff cut and restoration of $78,300 in State funds changed the projected $110,000 Budget deficit into a $143,000 surplus.

However, the surplus gained by reducing Sheriff service is not expected to last the night, as City Staff has proposed new spending to deplete the surplus, leaving little for likely upcoming unplanned expenses.

One Night of Spending Almost Exhausts Budget Surplus Gained by Sheriff Cuts
Item Dollar Amount Budget Balance
City Budget Status - June 2011 -110,000
Cuts to Sheriff Service +175,300 +65,300
State Funding Restoration +78,300 +143,600
Proposed New Accounting Software System - Agenda Item 18 -50,000 +93,600
Proposed Weed Abatement Enforcement Fire Marshall - Agenda Item 20 -25,000 +68,600
Extend Weed Abatement Intern - Agenda Item 20 -25,000 +43,600
Weed Abatement Door Hangers & Forms - Agenda Item 20 -10,000 +33,600
Survey City Park for Bridge Dispute - Agenda Item 21 -6,800 +26,200
Facilities Assesment inc New City Hall - Agenda Item 19 -19,235* +16,995*
* Called "rollover" in Budget