The City Council is expected to adopt the 2024-25 budget following a hearing on June 24. The fiscal year officially starts on July 1.
In related news, District Two Council Member Tom Moore raised a question about the five-year forecast.
Background
The proposed 24-25 budget was balanced with a combination of cuts and using one-time revenue of more than $300,000. Revenues for the 24-25 budget are expected to be $44 million and expenses $44.3.
The council asked for more cuts during a May 20 budget workshop. Details will be available at the budget hearing.
As previously reported, Finance Director Barbara Arenado reported there was a structural deficit.
“Ongoing expenditure reductions are no longer sustainable long term and we must take action immediately to find and implement and generate new sources of revenue to this end,” Ingram said.
Seal Beach is currently negotiating labor contracts with the Police Officers Association and the Police Management Association.
Five-year forecast question
Every year, Seal Beach staff provides the council with a five-year forecast.
In an email to staff prior to the Monday, June 10 City Council meeting, Moore asked: “Last year, 5-year forecast was about $15M deficit and this year it is $10M. What changed to reduce the forecast $5M?”
Moore was referring to the cumulative deficits in the 2023-24 five-year forecast and the 2024-25 five-year forecast. With his message, Moore included an image of the two forecasts as they appeared in the May 30 print edition of the Sun. (Copies of the Sun are available at 216 Main St.)
Last year’s five-year forecast projected a surplus of $26,500 in 2022-23; a surplus of $20,183 in 2023-2024; a deficit of $1.6 million (rounded) in 2024-25; a deficit of $3.3 million in 2025-26; a deficit of $4.5 million in 2026-27; and a deficit of $5.5 million in 2-27-28.
This year’s forecast projected a surplus of $20,183 in 2023-2024; a deficit of $354,207 in 2024-25; a deficit of $1.8 million (rounded) in 2025-26; a deficit of $2.3 million in 2026-27; a deficit of $2.6 million in 2027-28; and a deficit of $$2.9 million in 2028-29.
Moore had other budget questions and comments for staff. Physical copies of Moore’s questions and answers from unidentified staff members were made available at the June 10 meeting.
“Since 2022, we should have been increasing the charges for cell towers based on the contracts. Can we verify that this is the case?” According to Moore, if some contracts have not been increased, there would be an additional $60,000 for the city.
“Do we categorize contracts that have annual changes to get reviewed every year to make sure we are adjusting the contracts appropriately for additional revenue?”
“As discussed, [there is] an Excel sheet of all contracts with minimally the state date and end dates that can be sorted so council and the public can see upcoming contracts for renewal, optimally extracted by a LaserFiche module/update to limit staff time.”
“Categorizing subcontractors from 1-5 where absolutely necessary is a 5, it would be helpful to see the importance of the contractors from the City’s perspective.”
Staff’s unsigned reply: “Staff is reviewing these questions relative to the FY 2024-25 budget adoption at the June 24th Council meeting and will respond to these questions as soon as possible.
