RIORDAN BOOSTS BUDGET MAYOR: MORE SERVICES, NO TAX HIKE IN PACKAGE.

Byline: Rick Orlov Staff Writer

In his last budget before leaving office, Mayor Richard Riordan will propose today a $4.9 billion spending plan that holds the line on police spending but dramatically increases the amounts spent on neighborhood improvements.

``I think if people really, honestly look at this, they will see an increase in services around the city,'' Riordan said during a meeting Thursday with Daily News editors and reporters.

``We are expanding services so that people in the Valley and other areas looking at secession can see they are getting a fairer share of services the city offers.''

The mayor acknowledged that the budget, which contains the biggest increase he has proposed in his eight years as mayor but again without a tax increase, has been bolstered by another year of a strong economy that is expected to tail off only slightly this coming year.

``I think we are leaving the city in outstanding shape for whoever is the next mayor,'' Riordan said.

When his term ends July 1, he will turn over the Mayor's Office to the winner of the June 5 runoff election - either City Attorney James Hahn or former legislator Antonio Villaraigosa.

In his budget message, Riordan notes the contrast in economic conditions between this year and 1993, when he was first elected at the height of a local and national recession.

``I am proud to report we have come a long way since I took office,'' Riordan said. ``Our city today is in the best financial condition in our history. However, we must do more.''

The package will be reviewed by the City Council, which has until June 1 to adopt a city budget. City officials said Thursday that they had not been briefed on the plan and had no immediate reaction to it.

Riordan said his proposal deals with the needs of improving neighborhoods.

``The story of the new Los Angeles will forever live in our neighborhoods, in our businesses, in our schools and in each and every one of us,'' Riordan said. ``I am proud to have played a role in this story.''

In looking ahead, Deputy Mayor Jennifer Roth, who oversees the budget for Riordan, said the financial problems the city suffered a decade ago after cuts in the federal defense budget should be softened because of the strength of small- and medium-size businesses in the city.

The general fund budget being proposed by Riordan is $3.2 billion, a $276 million increase over this year, and there is a record $100 million in a reserve fund - 3.3 percent of the spending plan.

The single biggest increase in the budget is $71.6 million for expected salary hikes of 3 percent for city workers although a new contract for civilian employees is likely to be negotiated by the next mayor.

As in past years, the greatest portion of the budget - $1.26 billion - will go for the Los Angeles Police Department.

However, the mayor is projecting a decline from 9,000 to 8,700 officers, with plans to hire 360 new officers during the coming year to partially replace those who leave.

To increase the number of officers on the street, the mayor proposed hiring more civilians to free up officers from desk jobs, as well as paying more in overtime and elimination of some specialized units.

He calls for budgeting $40 million to settle lawsuits related to the Rampart Division corruption case - for a two-year total of $65 million - and an additional $25.9 million to cover the coming year's expected costs to implement a pending consent decree over the LAPD.

His spending plan also contains a $44 million increase for the Los Angeles Fire Department, as previously announced by the mayor, to hire 81 new paramedics and 60 new firefighters, as well as to purchase more helicopters and ambulances.

One of the new expenses in the budget is $4.2 million being provided for the Department of Neighborhood Empowerment, which in July will begin the work of creating a series of neighborhood councils around the city.

``We don't know how many they will be able to create this first year,'' Roth said. ``Part of that will be decided by the new mayor and council. But we think there are adequate funds for them to get started.''

In addition to the direct allocation, Roth said $500,000 has been set aside for the Department of Neighborhood Empowerment if needed.

Not all the funding is within the agency, however.

The Board of Public Works will administer a $1.5 million grant program to staff neighborhood councils and provide office space. The board already runs a grant program that provides matching funds of up to $50,000 for neighborhood improvements. Also, funds are budgeted within the Information Technology Agency and the Department of General Services for other related costs.

Riordan said he also was increasing the amount of the budget devoted to programs designed primarily for children.

The ``LA's BEST'' after-school program will be increased to 76 elementary schools and 14,200 students, a four-fold increase since 1993.

Also, the budget has money for 29 new or expanded recreation centers, expanding the ``clean parks'' programs from 37 to 47 locations, building three skate parks, developing the 100-acre Ascot Park in East Los Angeles and renovating Griffith Observatory.

In addition, the budget calls for three new branch libraries - including one in Pacoima - and having 16 branch libraries open 52 hours a week. A $16 million allocation is included to replace or buy new books.

On infrastructure issues, Riordan also is calling for expansion.

He proposes resurfacing 275 miles of streets, slurry sealing on 200 miles of streets and the paving of 10 miles of dirt streets and alleys. He calls for repairs on 52 miles of sidewalks and a 14 percent increase in tree trimming.

Riordan said the expansion of all the programs is possible only because of the strength of the local economy, with the city receiving some $125 million more in revenue than had been projected.

The increases are in all sectors of revenue - from property and sales taxes to an increase in tourism, due primarily to the hosting of the Democratic National Convention last August.

This money will allow the city to reduce business taxes by $10 million this coming year as well as cutting $10 million in taxes paid by residents, through a temporary reduction in the utility users tax on natural gas.

Roth said the mayor wants to lower the tax on natural gas from 10 percent to 6 percent for the period between January and April 2002, the heaviest usage time for most residents.

BUDGET HIGHLIGHTS

Here are some major features of Mayor Richard Riordan's proposed budget for 2001-2002:

--Create a $100 million reserve fund - 3.3 percent of the spending plan.

--Set aside $40 million for Rampart-related cases and $25.9 million for costs of implementing the federal consent decree over the LAPD.

--Provide $10 million in tax relief for businesses.

--Provide a temporary cut, valued at $10 million, in the utility users tax for natural gas.

--Add $44 million for the Los Angeles Fire Department to hire new paramedics and firefighters and purchase equipment.

--Set aside $71.6 million for employee raises.

--Provide $4.2 million to create neighborhood councils.

--Expand or build 29 recreation centers around the city and expand the ``clean parks'' program to 47 facilities.

--Build three skate parks, including one in Sunland.

--Expand the ``LA's BEST'' program to 76 elementary schools.

--Build three libraries, including one in Pacoima, and expand operating hours at 16 branches to 52 hours a week.

--Increase street resurfacing from 225 miles to 275, increase street slurry sealing to 200 miles and double sidewalk repairs to 52 miles.

--Expand Operation Healthy Neighborhoods, increase the anti-graffiti program by $8 million, increase pothole repairs and complete the curb-cut program to comply with the Americans with Disabilities Act.

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Photo: (color) RIORDAN

Box: RIORDAN'S BUDGET HIGHLIGHTS (See text)