Manhattan Beach Financial Director Bruce Moe introduced a balanced operating budget for the upcoming fiscal year to the City Council on Tuesday, with a projected $252,691 surplus in the $53 million general fund.
“The city continues to see overall economic stability and advancement,” City Manager Dave Carmany noted in his budget message. Property tax revenues, the city’s largest revenue source, are slowly improving and sales tax revenues are growing with consumer confidence.
In the proposed budget, property tax revenues are projected to increase by 2.6 percent, or $516,605, and sales tax revenues are to increase by 7.8 percent, or $631,000. “It’s an encouraging trend, but don’t think were going to see tremendous growth in property tax in next year or two,” Moe said.
Public safety was a top priority in building this year’s budget, said Financial Director Bruce Moe. In past years, police staff was reduced to help balance the budget. This year, the proposed budget reflects five additional positions – two police officers, one police lieutenant, one jailer, as well as one associate planner.
The public safety additions are largely due to the state’s public safety realignment bill, AB 109, under which counties will supervise a portion of inmates and parolees that previously were supervised by the state. The bill took effect last October.
With the implementation of the bill, those with non-violent, non-serious and non-sex related crimes will likely have reduced sentences in county jail, according to Carmany. “Manhattan Beach is already seeing the effects of realignment with a significant increase in property crimes and some violent crimes,” Carmany wrote in his message. “The enactment of AB 109 and its effect on sentencing has created a sense among criminals that the risk is worth the consequence.”
Full-time city employees are proposed to increase to 268 from 266, reflecting the proposed staff additions and the elimination of the two currently vacant positions, water distribution supervisor and water plant operator. The city attorney position is now a contracted position, and as a result was removed from the list of full-time employees.
In the city’s five-year budget forecast, no salary adjustments have been accounted for, as they are pending labor negotiations, Moe said. “Right now, there’s no room for adjustments,” he said.
In the future, revenue enhancements may be necessary, as the general fund is currently subsidizing Proposition A, street lighting and storm water funds. Moe said the city could raise about $3 million with a user utility tax, which would require approval by local voters.
The city will hold one or two budget study sessions next week, in preparation for adopting the budget on June 5. One meeting was already held on Wednesday. The next study session will be held on Tuesday, May 22 at 6 p.m. in the police and fire community room. If necessary, an additional session will be held on Thursday, May 24, at the same time and place.
The council commended city staff for presenting a thorough, balanced budget, especially at a time when California’s budget deficit has surged to $16 billion. “I think we have a lot to be thankful for,” said Councilmember Amy Howorth.