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San Gabriel Valley Digest

Alhambra : Budget Cuts Ordered

September 07, 1989

Alhambra city departments have been told to trim their 1989-90 operating budgets by 3.25% because of financial uncertainties surrounding the Alhambra Community Hospital.

The cuts were ordered as part of a scheduled readjustment of budget requests for the 1989-90 fiscal year.

The belt-tightening measure, which the City Council has unanimously approved, would save $422,301 for the city, according to a staff report to the council.

A 30-year bond issue that helped finance construction of the hospital has complicated city finances, said City Manager Kevin Murphy. A proposal to sell the financially troubled hospital and pay off the bond remains on hold, he said. Negotiations for the sale have reached an impasse over financing for the $13.6-million deal, said hospital administrator Ron Dahlgren.

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