Divided Council OKs Cuts in 2-Year Budget

A divided City Council passed its budgets for 1997-98 and 1998-99 this week, slashing grants to community groups and eliminating the city’s Economic Development Department in the process.

For the first time, the city passed a two-year budget to improve long-range planning. The $12.5-million operating budget for 1997-98 was trimmed about 1% from the current year and will decline again, to $12.3 million, for 1998-99.

Projected revenue is about $16 million for next year and $14 million for the following year. The council had approved most of the budget June 25 and resolved a few disputed issues Tuesday night.

The votes to approve both budgets were unanimous. But that came after votes to reach consensus on individual items, many of which passed 3 to 2, with council members Karen Lloreda and Harold R. Kaufman dissenting.

After voting to eliminate the Economic Development Department, Mayor Bill Ossenmacher said a city as small as Dana Point doesn’t need such a department. But Kaufman defended the department’s business-registration program, which he said helps companies planning to move to the city.

The council eliminated all community services grants, except $2,500 for the Grad Nite high-school outing.