Anaheim Officials Vow to Press On With Major Projects : Crisis: Despite county fiasco, city will hire police, stay committed to Disney project and consider new stadium.

By GREG HERNANDEZ

Jan. 22, 1995 12 AM PT

TIMES STAFF WRITER

ANAHEIM — The city plans to press on with major development projects, hire more police officers and weather the effects of the county’s bankruptcy without raising taxes on its citizens or making drastic budget cuts, city officials said Saturday.

During a two-hour budget workshop attended by about 25 people Saturday morning, government staffers gave the City Council its most detailed look to date into the city’s financial state in the aftermath of the county’s bankruptcy filing last month.

“Our ability to maintain (our) vision is certainly being challenged by the bankruptcy and the recession over the last four years,” City Manager James D. Ruth told the council. “While it is being challenged, it certainly is achievable.”

The city had $169 million in the county’s collapsed investment pool, which lost $1.69 billion due to the risky strategies of former Treasurer-Tax Collector Robert L. Citron.

In a worst-case scenario, Anaheim could be forced to absorb a $37.2-million loss. To compensate, the city would transfer $2 million a year from its $131.6-million reserves to the general fund.

The city would face a $9-million budget shortfall for the 1995-96 fiscal year, even if the county financial crisis had not occurred. The municipal deficit would grow to $11 million if the worst-case scenario comes true and the city loses 22% of its investment in the county pool. Ruth said the city is “aggressively pursuing” all avenues to regain its entire investment.

Officials said they will balance the shortfall by reducing expenditures $1.5 million, contributing $4 million less to reserves, and relying on $3.5 million of one-time revenue.

Ruth said that when a preliminary budget is presented to the council for review in May, it will recommend hiring six to eight new police officers as well as reopening some city swimming pools and restoration of Monday operating hours at city libraries.

Councilman Bob Zemel said hiring more police officers “is the reason for government in the first place and stands out above anything else in the budget. Even if we lose other things, we need to put more police out in the streets.”

The city manager also reaffirmed the city’s commitment to the following projects:

* Westcot, the Walt Disney Co.’s proposed $3-billion expansion of Disneyland, which has been delayed and might be scaled back by the company.

* Negotiating a new 30-year lease with the California Angels baseball team, which may include the construction of a new baseball stadium. Ruth said the city hopes to reach agreement with the team “in the next several months.”

* Development of an entertainment and retail corridor surrounding the stadium area. City staff is expected to recommend a contractor to the council next month to draft a conceptual design for the project.

* A $172.5-million revitalization of the neighborhoods surrounding Disneyland and the possible expansion and renovation of the Anaheim Convention Center, which is currently being studied. These projects are being partially funded by a recent increase in the city’s hotel bed tax from 13% to 15%.

Officials said Saturday that continued investment in city-owned facilities is vital to Anaheim’s financial future.

The departure of the Los Angeles Rams to St. Louis will also help the city’s overall financial picture because the team must pay off a $33-million bond for Anaheim Stadium improvements.

“(The Rams) can pay it off in cash or pay off the debt service over a number of years,” Ruth said. “Either way, that debt will go away for the city.”

But any financial benefit from the Rams’ leaving was not figured into the early budget projections because the team’s move has not yet been approved by the National Football League.