TUSTIN : Projections Show City’s in Sound Fiscal Shape

Although some uncertainties remain, mid-year budget projections indicate that the city is financially in good shape.

“Compared to a lot of other cities, we’re in a position where we’re sound,” City Manager William A. Huston said Tuesday.

With regard to the county bankruptcy, Tustin does have far less to worry about than other cities. Tustin’s conservative investment policy prompted officials to pull the city’s $4 million in principal out of the county pool last spring. The city had just $185,000 in accrued interest in the pool when the county declared bankruptcy Dec. 6.

Tustin’s operating and capital projects budget for fiscal 1994-95 is about $61 million.

Also caught up in the bankruptcy is Tustin’s $700,000 deposit for its share of the planned countywide emergency communications system. But even if the city does lose a portion of its interest income or deposit money, Huston does not expect that to have a major impact on city finances.

Of greater concern to the city are the lingering effects of the recession and “the state taking money out of our wallet” over the past three years, Huston said.

“Because of the recession and the state grabbing money, we’ve not been putting aside as much money as we should for capital improvements,” Huston cautioned. “We know we have major projects coming. We’ll be facing some tough decisions.”