CAUTIOUS PLAN FOR SPENDING OK'D IN CITY.

Byline: Heather MacDonald  Staff Writer

SANTA CLARITA - Anxious about the impact of the state budget crisis, the City Council on Tuesday adopted a conservative $164.7 million spending plan for 2003-04.

Rather than focus on building new roads or parks, the budget rebuilds Santa Clarita's emergency reserve accounts, cuts spending and delays dozens of projects to cope with California's fiscal crisis.

However, Santa Clarita's budget could change significantly if lawmakers in Sacramento decide to use money now earmarked for cities and counties to fill a current deficit of $10.7 billion that is expected to swell to $38.2 billion in the coming months, officials said.

``Santa Clarita is going to be in good shape, no matter what the state does,'' said Mayor Cameron Smyth.

City officials have urged the state Legislature to reach a compromise by July 1 - the beginning of the state's fiscal year - and to approve only one-time cuts in aid to local governments.

As a hedge against the uncertainty created by the state's fiscal crisis, Santa Clarita's budget doubles the city's operating reserve to $6 million and leaves an additional $3.5 million in the budget uncommitted.

The spending plan also slashes $1.1 million from the city's budget by streamlining operations in the city's six departments.

In addition, the budget puts $4 million in spending on hold until December. That includes the community grant program, funding for eight positions at City Hall, tree trimming, park and road maintenance, median landscaping and a new traffic signal.

While the budget contains funding for few new projects or programs, it sets aside more than $1 million for the operation and maintenance of the state-of-the-art Santa Clarita Aquatic Center and $200,000 more for other new parks.

Heather MacDonald, [phone]

heather.macdonald(at)dailynews.com