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Manhattan mulls $5.3 million surplus
by Dan Bialek
The Manhattan Beach general fund recorded a $5.3 surplus this year according to an independent audit conducted by the city.
At Tuesday night’s city council meeting, Finance Director Bruce Moe presented the Comprehensive Annual Financial Report for the fiscal year that ended June 20, 2000. The report showed that Manhattan received a boost in general fund income above what had been projected.
"The surplus was higher than we budgeted, but we budget very conservatively just to be safe," said Moe.
According to the report, Manhattan property tax revenues increased 12 percent, sales tax income increased 15 percent, hotel tax profits increased 5 percent, and business license tax gains increased 6 percent over the year before.
Moe said that many cities in the state had enjoyed similar gains from the still thriving economy, but he also warned that changes could be on the way for Manhattan.
"We’ve been fortunate that the revenues have been high, but we are going to see a loss of sales tax income for this year now that the Ford dealership left four months ago," Moe said. "Champion Chevrolet is also leaving Manhattan. They’ll be moving over to Hawthorne perhaps as soon as April 2001."
Car dealerships are high-income generators in California because cities get one percent of the eight-and-quarter percent state sales tax.
"Both of these car dealerships ranked in the top five sale tax income contributors," Moe said.
The budget surplus has been put back into the general fund, which pays for normal business expenses such as fire and police services. The surplus will be applied to next year’s proposed budget, which will be presented to the city council in May.
In other council news, a review was made of the effectiveness of traffic diversion measures on Ocean Drive in El Porto. City traffic engineer Richard Garland presented information on the "Left Turn Required" signs on Ocean Drive at 40th Street and the temporary barricades that block the southbound lane of Ocean Drive at 40th Street from 3 to 7 p.m. each weekday. After hearing from 11 residents in the area, nine of which were in favor of keeping the barricades, the council moved to keep using the temporary barricades and extended the time they are taken down to 8 p.m.
The council also voted to cancel its Jan. 2 meeting. The next scheduled meeting is on Jan. 16. ER