City’s spending could tighten in 2006-07

Huntington Beach’s $319-million budget for 2006-07 will be a conservative one, with a 3.1% decrease in spending, or about $10 million less than last year.

City Administrator Penny Culbreth-Graft presented the budget for the next year at a study session Monday.

The city plans to set aside about $12 million, or 7% in reserve, as required by the City Council since last year. Culbreth-Graft suggested adding another 3% to the 7% general fund reserve that will be funded by surplus from last year’s budget.

“The city is still recovering from the staffing layoffs and budget cuts,” Culbreth-Graft said.

Council member Don Hansen supports having reserves to provide a cushion in hard times.

“Whether it’s the most prudent thing to do that, I am still formulating an opinion,” he said.

The city has also benefited from an 11% increase in revenues, or about $6 million in property taxes over last year. The rise in home prices has helped fill the city coffers.

The general fund showed a $10 million increase to about $171 million over 2005-06.

“We prefer a more conservative approach to not have to go down the path of layoffs,” Culbreth-Graft said.

Councilman Keith Bohr called it “an accomplishment” by the city administrator’s office to present a smaller budget.

Highlights of the budget include adding new positions, keeping additional reserves, a capital improvement project budget of $35 million in capital and infrastructure projects and replacing aging equipment.

“The budget is getting more and more user-friendly,” Bohr said. “It’s always a challenge balancing many more projects and operations than we can afford.”

About 20 positions will be added to city staff that will help restore some services to residents and tourists.

In 2002, the city laid off several workers and cut back on services due to a drop in its finances in 2000.

“The spots to be added on are looking at key areas like public works,” Hansen said. “Services like weed abatement and maintenance issues become more apparent as time goes by and more problematic.”

The general fund comprises the biggest chunk of the city’s budget at 56.2%. The fund provides for city services such as police, fire, marine safety, public works and city administration.

The city plans to use a $19-million one-time fee from the waterfront residential project to fund downtown improvement and storm-drain projects.

Part of the $19 million will be used to pave and repair parts of high-traffic streets such as Newland, McFadden, Adams and Garfield streets.

Downtown streets including Walnut, Pecan, Orange, Olive, Lake, Acacia, 2nd and 3rd streets will get funds for repairing pavements, sidewalk curbs and taking care of its alleys.

A $1-million reserve is proposed in the budget to help pay for liability and workers-compensation claims. Another $4 million has been set aside to pay for replacing vehicles and equipment owned by the city.

For more information about the budget, visit www.surfcity-hb.org.

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