Signal Tribune Newspaper

BY NICK DIAMANTIDES
Staff Writer

The Signal Hill City Council unanimously approved the city’s $33 million 2008-09 budget during its June 24 meeting. The council also approved the 2008-09 $18.2 million Signal Hill Redevelopment Agency (RDA) budget.
“The city council and (RDA) reviewed and discussed the proposed (budgets) on June 9 during a budget workshop session,” said Maida Alcantara, the city’s finance director. “A presentation was made that covered reserves, revenues, expenditures and the impacts of recent state actions on the city’s budget. Each department’s budget was presented.”
The Signal Tribune published a report on the two-hour-long workshop on June 12.
During the June 24 council meeting, City Manager Ken Farfsing described a meeting city officials recently had with State Senator Lowenthal. According to Farfsing, Lowenthal warned that the state is likely to borrow a portion of the tax revenues received by cities and counties. While the money would eventually be paid back to the municipalities, the state’s borrowing will worsen their economic woes in the upcoming fiscal year. “The senator doesn’t support borrowing from local government because it puts the state further in debt, but he did indicate that the state’s deficit is so large that all options are on the table,” Farfsing noted.
The city manager added that Signal Hill has ample financial reserves to weather the present economic storm without cutting services.
“The City of Signal Hill (was) wise enough to set up reserves, work at redevelopment to come up with new revenue sources,” said Mayor Mike Noll. “This is why Signal Hill is in the shape that it is in.”
The next council meeting is scheduled for 7 p.m. on July 8 in the council chambers of Signal Hill City Hall.