City shops in buyer’s building market

Even in a tight budget cycle, Newport Beach is planning on $30 million in new appropriations for capital improvements that include funding for a new city hall and park, Marina Park and Sunset Ridge Park.

The city has $10 million budgeted for the new Sunset Ridge Park in West Newport Beach in next year’s budget. The park, which includes plans for two soccer fields, a baseball diamond and walking trails, has been in the planning stages for several years, Councilman Steve Rosansky said. The project is scheduled to be completed in spring 2011.

“It’s been a long time in coming — we think it’s definably needed in West Newport,” said Rosansky, whose council district encompasses West Newport.

The City Council has to be mindful of slowed growth for sales and property tax revenue for the city this budget cycle, but also take advantage of a buyer’s building market, Rosansky said.

“We’re concerned about the recession and our budget is going to reflect expectations of reduced revenues for the city,” Rosansky said. “At the same time, it’s also a good time to build.”

Rosansky cited the example of plans to finance the new Oasis Senior Center in Corona del Mar, which was originally expected to cost about $20 million, but the bids for the center came in several million dollars less than expected because of a downturn in the building market.

Next year’s budget also includes $100,000 for replacing old playground equipment and a new playing surface in Eastbluff Park, $2 million in funding for design and environmental planning for Marina Park on Balboa Peninsula, which is slated to break ground in 2011.

The budget also includes $6 million for design and environmental planning for a new City Hall and park, $7 million for underground utilities in Santa Ana Heights and $30,000 to replenish sand on beaches at China Cove and Balboa Island.

Next year’s budget has less wiggle room for little projects the council might want to approve, like funding for landscaping traffic medians and a few other projects that were put on hold from last year’s budget when sales tax revenues fell a few million dollars short of original projections.

In the last few budget cycles, the City Council has typically had about $5 million to allocate to projects that it felt were important to fund, but that money has been cut back to about $2 million this year, Newport Beach City Manager Homer Bludau said.

“Certainly, when we have $3 million less than previous years, there is going to be a difference,” Bludau said.

The City Council is slated to discuss appropriations for the next budget year at 7 p.m. Tuesday at City Hall.

Budget Highlights

 $10 million to build Sunset Ridge Park in West Newport

 $100,000 for replacing old playground equipment and a new playing surface in Eastbluff Park

  $2 million in funding for design and environmental planning for Marina Park on Balboa Peninsula

 $6 million for design and environmental planning for a new City Hall and park

 $7 million for undergrounding utilities in Santa Ana Heights

$30,000 to replenish sand on beaches at China Cove and Balboa Island.