Part one of two.
Last week, staff told the City Council that Seal Beach had a structural deficit. (See “City budget strained” at sunnews.org.) That’s basically when revenues aren’t enough to cover costs.
On Monday, May 20, the City Council looked at further cuts beyond those staff reported taking to address the problem of costs rising faster than revenue. Due to limits of time and space, this first installment on summarize the roughly three hour meeting. In part two, some details. The council did not take any formal action at the May 20 workshop.
Background
Seal Beach staff has projected $44 million in General Fund revenues for 2024-25.
Staff also projected $44.3 million in General Fund expenditures for 2024-25.
City Manager Jill Ingram says additional cuts are not sustainable.
Some council members disagree.
May 20 workshop
Staff presented the council with $423,900 in additional possible cuts.
Among the staff proposed:
• The council’s discretionary funds. (Each council member gets $20,000 to use at their discretion.)
• Staff proposed reducing the senior transportation to three days a week.
• Eliminating the College Park West Summer Kick Off and the College Park East Summer Send off.
• Arbor Park maintenance. (The park is physically within the city limits of Los Alamitos.)
• Marine Safety Chief Joe Bailey reluctantly accepted not putting in fiber communications for Lifeguard Headquarters.
District Five Councilman Nathan Steele proposed accepting the budget as staff had proposed last week. That budget included one-time use of $354,207 to balance the budget.
District Two Council Member Tom Moore proposed renegotiating the contract to clean the public restrooms at First Street, canceling the shuttle, and reducing police overtime to 2022 levels. He also suggested changes to the budget process in the future.
District Four Council Member/Mayor Schelly Sustarsic requested a closed session to discuss executive management pay.
District Three Councilwoman/Mayor Pro Tem Lisa Landau also raised concerns about executive pay.
City Manager Jill Ingram said contracts are not negotiated in public.
Later, Ingram said staff cut $3 million in operation costs and cut $1 million in personnel costs.
Landau also suggested having the council approve non-emergency contracts and possibly having the mayor or mayor pro tem approve emergency contracts.
Landau said she was good with reductions in the discretionary funds, but Steele said his funds were spoken for.
Landau, for the second time in two weeks, wanted to discuss using reserve (volunteer) officers.
Police Chief Michael Henderson argued, for the second time in two weeks, that a reserve officer program wasn’t a viable way to save Police Department costs.
Moore asked for staff to come back with more information about sales tax.
Steele wanted more information about the Dial-A-Ride.
Finance Director Barbara Arenado said city revenues are not healthy.
Public Works Director Iris Lee said taking money from infrastructure would cost more in the long term.
City Attorney Nick Ghirelli said the City Charter required the council to adopt a budget after a noticed public hearing.
Sustarsic understood that the budget hearing would be on June 10.
Two members of the public called for more funds for SBTV-3. (See Letters to the Editor.)
The 2024-25 fiscal year starts on July 1.
