Manhattan Beach adopts balanced budget
The City Council unanimously passed a balanced $53 million operating budget on Tuesday, with a modest surplus of about $300,000, for the next fiscal year.
“[Manhattan Beach] has maintained adequate reserves, borrowed judiciously, staffed appropriately, and spent only where necessary, all while providing outstanding city services,” wrote City Manager Dave Carmany in his budget message. “In recent years, when the economy deteriorated, the city reduced costs through belt-tightening without major service impacts to residents and businesses.”
Finance Director Bruce Moe presented a long-term forecast that suggests a $2.3 million surplus in five years.
The budget reflects five added 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, under which counties will supervise a portion of inmates and parolees that previously were supervised by the state.
Since the bill went into effect in October, the city has seen an increase in car and home burglaries, said Police Chief Eve Irvine. There have been 129 burglaries, compared to 85 the previous year. During the same time period, car thefts increased from 104 to 150, and grand theft auto increased from 20 to 26, Irvine said.
“I fully believe we have not seen the full effects of realignment,” Irvine said, adding that she anticipates crimes will continue to increase, regardless of the new police staffing positions, because of opportunity.
Carmany said he wants the public to feel safe and the police staff to be prepared for any emergency. “You see people out jogging on the bike path, you don’t see that in a lot of towns, but you see it here and there’s a reason for it,” Carmany said.
He recalled the response to the recent robbery at Pier 1 Imports. “Our department’s reaction to that was first-rate – it was a SWAT team, it was mutual aid, it was air resources, it was street closures,” he said. “At that moment, you’re either ready or you’re not. And our team was ready. And I want to have them ready going forward.”
Labor costs make up 70 percent of the budget. Salary adjustments are not reflected in the budget, as labor negotiations are still pending. Moe said that total compensation and pension costs are a long-term concern.
Resident Gerry O’Connor was critical of the council’s refusal to make a statement about goals or strategies regarding labor negotiations. “I, as a resident, find it particularly challenging to address this budget at all given that 70 percent of it is addressed in a manner that I don’t even know what the direction of it is,” he said.
The city has maintained $14 million in reserves, largely to be prepared for any unforeseen circumstances. “For us I think the biggest worry would be a massive earthquake,” Moe said.
At the meeting, the council agreed to add a $75,000 line item appropriating funds for the Manhattan Beach Chamber of Commerce.
Business owners and Chamber members asked the council to support the Chamber, since it is like an extension of the city. “I think we need to look at the Chamber as revenue generator,” said business owner Tony D’Errico, adding that if the council supported the Chamber, he’d join the organization and pay his dues as a member.
The general fund continues to subsidize the storm water fund by $300,000 and the street lighting and landscaping fund by nearly $200,000. “This deficit is likely to grow larger as energy costs increase,” Carmany wrote in his budget message, adding that this could result in less funding for police, fire, paramedics, public works and parks and recreation activities. Carmany wrote that options to increase general fund revenue include a transient occupancy tax, which doesn’t require voter approval, or a utility user tax, which does.