Covina : City Will Dip Into Reserves

The city will use almost $1.7 million in reserves to offset a shortfall in a $30.8-million 1992-1993 budget approved last week along with a separate $15.5-million redevelopment budget.

The City Council also passed a resolution asking union employees, including fire and police personnel, to consider a salary freeze beginning Jan. 1. Earlier this month, a mandatory salary freeze, also effective Jan. 1, was imposed on the city manager, department heads, and some professional and technical workers.

The deficit was caused by cuts in state funds and a 14% decrease in sales-tax revenue compared with last year.

Finance Director Stan McCartney said the city could face an extra $2.2-million shortfall if the state goes through with a plan to take away part of the city’s vehicle registration fees and property taxes.