Ontario Council approves balanced budget

The city has a history of financial peace - this is the 11th year in a row it has been recognized by several agencies in the state for its budget process.

This year, the city got kudos from the Government Finance Officers and the California Society of Municipal Finance Officers Association.

City Manager Chris Hughes said the budget is consistent with the council's goals and objectives.

"It's still deficit spending. This is year two of a five-year plan," Hughes said. "This year will really determine where we're going."

In 2006, Ontario took steps to set aside $24.6 million to brace itself for a turbulent and uncertain economy.

After dipping into those reserves for a second year in a row, the city will be left with $12.5 million.

There will be a slight increase to the city's general fund expense budget - about 1.6 percent more than this year. The $2.3 million increase is attributed to rising health insurance costs as well as retirement costs.

"We are in the position we are in because you have provided staff with the basic fundamentals - that's what's getting us through this time period," said Grant Yee, city finance director.

Mayor Paul Leon said he is impressed that city staff had the foresight and vision four years ago to anticipate the reductions.

Leon said credit should also be given to former city manager Greg Devereaux, who always preached to the council to live within their means.

"You guys made the reductions that helped us to not go crazy during the boom and kept us within our means," Leon said. "You predicted that we would be here one day."