In a public hearing at the Manhattan Beach City Council meeting Tuesday, Finance Director Bruce Moe was the bearer of good news for the city: the economy is recovering, as evident in the city’s growing revenue across the board.
From fiscal year 2012 to 2013, property tax revenue has grown 6 percent, sales tax 7 percent, transient occupancy tax 21 percent, business license tax 3.5 percent, building permits 6.6 percent. In total, the general fund revenue has risen 3.7 percent from last year.
Moe identified anticipated challenges in the city’s budget for the next fiscal year: rising pension costs; the rollout of Affordable Care Act, which could require the city to provide health benefits for part-time employees; inadequate funding for the Storm Water Fund, and retail trends of shoppers shifting to the Web, thereby diminishing sales tax revenue. The stability of the state budget is also in question, he said.
The mid-year budget review and Capital Improvement Plan discussion will be held on Feb. 25. The City Council will review the proposed budget for fiscal year 2014-2015 on May 6. Four study sessions will follow on May 8, May 13, May 14 and May 21. The FY2014-15 budget and CIP are expected to be adopted on June 3.