Budgets foresee slim increase

Alicia Robinson

While finances are tight in Costa Mesa and Newport Beach, city

council members in both cities will face modest spending increases, a

handful of new employees and largely status quo services when they

vote in June on budget proposals for the 2005-06 fiscal year.

In Newport Beach, a $186.9-million budget is proposed. It includes

$36.1 million in capital projects, among which are completion of the

Mariners branch library and work on a YMCA in Santa Ana Heights and

the Newport Coast Community Center.

The 2005-06 budget actually shows a decrease of 12.4% from the

previous year’s $213.4 million spending, but that total was higher

because the city was finishing up a number of capital projects and

construction costs kept going up, Newport Beach City Manager Homer

Bludau said.

Minus the capital projects, the budget for 2005-06 would be a

modest increase -- less than 2% -- over the prior year’s spending.

While a decrease in some grants and special project funds makes it

look like Newport’s revenues will be down in 2005-06, the general

fund income is expected to rise.

“There aren’t any drastic changes in revenues,” Bludau said.

“We’ll be getting more property tax than sales tax because the state

did a switch, but when all is said and done our revenues will be up

over last year.”

Costa Mesa officials have drawn up a total budget of $117.7

million for next year that includes $12.7 million in capital

projects. That would be 6.9% more than the $110.1 million the city

spent in the 2004-05 budget.

The biggest chunk of capital improvement dollars will go to final

planning for an expansion of the Costa Mesa Police Department, which

has about doubled its personnel since the facility was built in the

late 1960s, city Finance Director Marc Puckett said.

A new athletic complex at TeWinkle Park and operating costs for

the city’s new skate park also boost 2005-06 spending projections.

Although revenue projections are up 10.3% since the 2004-05 budget

year, Costa Mesa will have to spend $2.6 million of carry-over funds

to balance the budget. Puckett blames that on the state’s continued

raids on city coffers.

“The only reason that we are having problems is that state

legislators have not exercised fiscal responsibility,” he said.

Because the state isn’t likely to return any of the city revenue

sources it has commandeered, Puckett said the city will probably

again look at new sources of revenue such as increases to the

business license tax or transient occupancy tax.

* ALICIA ROBINSON covers government and politics. She may be

reached at (714) 966-4626 or by e-mail at

alicia.robinson@latimes.com.