By Tim Seyfert

The Los Altos Hills City Council unanimously approved a budget June 19 for the 2003-04 fiscal year, which began July 1.

The town expects to generate $7.5 million in revenues over the next 12 months, with budgeted expenses estimated at $6.1 million.

Council considered recommendations from the Finance and Investment Committee (FIC) during its regular town hall meeting to modify its initial budget proposal from last May.

With operating expenses budgeted at around $85,000 less than last fiscal year, the town originally planned for a $343,795 dip in the overall general fund during the course of the fiscal period. In addition, a $908,000 appropriation for street capital improvement projects was on the table.

Instead, council opted to eliminate cost-of-living increases for town employees and reduce the street improvement appropriations by $344,000 based on the FIC’s recommendations, bringing the projected decrease to $256,683. The committee also presented several additions to the budget proposal. Among those adapted were allocated funding for a new town hall design in the amount of $325,000, as well as $25,000 for a photocopier replacement for the town hall business office.

Like other California municipalities, Los Altos Hills is in the difficult position of passing a budget during a period of uncertainty, as the state faces a budget crisis. The state’s budget shortfall is estimated to be between $35 billion and $38 billion, and as of last week, the amount of funding to be provided to Los Altos Hills was still unknown.