During a special meeting Tuesday night, the Fountain Valley City Council conducted a study session on the city's operating budget for the 2012-13 fiscal year.
Finance Director Sherri Holman's report to the council focused mainly on how the city is dealing with Gov. Jerry Brown's decision to dissolve redevelopment agencies across the state. As a result, the city originally faced a deficit of about $1.4 million, which has since been reduced to about $439,000. To bridge that gap, the city will leave $179,000 in open positions unfilled and offer early retirement to the tune of another $248,000. The city's decision to continue with a part-time fire chief will save another $145,000, putting the city ahead by about $132,000.
Deputy City Engineer Temo Glavez outlined the Public Works Department's budget and plans for the upcoming year. The total budget for public improvements sits at about $7 million, with $6.9 million in expenditures planned for the upcoming year. About $2 million of that will come from the gas tax fund, and will be used for residential roadway rehabilitation during the summer of 2013.
The city will also spend about $1.4 million on pavement resurfacing on Magnolia Street from Talbert Avenue to Warner Avenue, on Slater Avenue from Newland Strett to Magnolia Street, and on Ward Street from Garfield Avenue to Interstate 405.
There are also capital improvements planned for the city's water and sewer systems. About $1.3 million will go toward structural improvments to sewer mains, with another $150,000 budgeted for new manholes and $500,000 for a project on Garfield Avenue between Brookhurst Street and Bushard Street. The bulk of improvements to the water system -- about $4 million -- will be spent on the rehabilitation of Reservoir No. 1.