MAYOR: VALLEY GETTING FAIR SHARE; RIORDAN PROMOTES SPENDING PLAN, WORRIES ABOUT RESERVE FUNDS.

Byline: Rick Orlov Daily News Staff Writer

Touting the dollars and programs directed toward the San Fernando Valley in his $4.1 billion budget, Los Angeles Mayor Richard Riordan said Tuesday that he believes the Valley gets back in services what it pays in taxes.

As he began his annual stump around the city to generate support for the budget he proposed Monday, the mayor also voiced frustration that he was unable to accomplish some cuts. And he vowed to defend the spending plan from major additions.

In particular, Riordan told Daily News reporters and editors that he is concerned about what the City Council will do when it begins deliberating how to use a $38 million reserve fund he included in the budget.

``While we still have the highest rating of any government in California, we have to be careful because the bond rating firms have us on a watch,'' Riordan said. ``They are concerned with the amount of cash that will be available to cover programs.''

The reserve fund is nearly double last year's reserve and one of the largest in the past 10 years. Riordan said he increased the reserve fund because of uncertainty over the impact of Proposition 218 that requires voter approval of any new tax.

Riordan's proposal has been relatively well received among council members, who say they want to see what develops when an ad hoc committee on the budget begins its deliberations April 30.

While Riordan's budget proposal holds the line on expanding the police force, it would provide $41 million for the Los Angeles Fire Department to hire new firefighters and purchase two helicopters.

Also, the budget includes $1.1 million to complete a fire station in Arleta, upgrade women's locker rooms at five Valley stations and provide two new rescue ambulances and two new fire engines for the Valley.

Other Valley services included in the budget are a new bookmobile for the Panorama City library, a new Studio City library and expanded hours to seven days and 60 hours at the Mid-Valley, West Valley and North Hollywood libraries and six days and 52 hours at the Pacoima and Sunland-Tujunga branches.

Also, Riordan said his budget provides for the new police training facility in Granada Hills, women's locker rooms at three Valley police stations and the start of the FASTRAC computer policing program.

``I think we can say with some certainty the Valley is getting its fair share per capita,'' Riordan said.

Citing figures compiled by his staff, the mayor estimated the Valley gets 52 percent of all street paving, 50 percent of tree trimming, 48 percent of storm drains and 54 percent of all miles of street that are sealed.

Riordan said he was confident he will have fewer problems with the City Council this year during its deliberations and that he might be able to convince council members to lift the hiring freeze that has been in place for more than six years.

``If we are going to hold our department heads accountable, we have to give them authority,'' Riordan said.``The way the hiring freezes work, you have to go through something like 25 steps to get it approved. A lot of department heads come to figure it just isn't worth it.''

The mayor also was asked about a portion of his budget that gives a $500,000 increase in the budget for the City Council this coming year.

``It's peace in our times,'' Riordan said. ``This is what we requested and what we gave them.''

The money is in addition to an increase to cover the costs of higher salaries, according to city budget documents.

The mayor said he would have recommended further cuts in departments if he had more authority, as he envisions under reform proposals of the City Charter.

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