South Pasadena : Budget Problems Foreseen

The city will deplete its dwindling budget reserves and suffer “major financial problems” within two years if it continues to operate in its current fashion, according to a financial study prepared by a citizens committee.

The eight-member panel, formed in December, 1990, told the council last week that it must boost revenues or cut services or both.

City Manager Kenneth Farfsing estimated that the city’s $1.9-million reserve fund will be exhausted in two years or less if expenditures and revenues continue along current trends.

Councilwoman Evelyn Fierro suggested that the city consider a tax increase. “We will be successful if we ask people for a few dollars each month to pay for services,” she said.

The council agreed to survey residents on attitudes toward service cuts and new revenue measures such as taxes and fees for services that are currently provided at no charge.