Seal Beach Finance Director Shalley Lin told the City Council last week that staff projects $428,707 in “excess” revenue in the 2012-13 fiscal year. Residents, meanwhile, have asked the council to carry out special projects.
Lin presented the council with an overview of the proposed budget during the council’s Wednesday, May 30, budget workshop. The council studied the capital improvement plan workshop on Thursday, May 31. Neither meeting was recorded on audio or video.
Budget workshops are simply study sessions. The city has not issued a notice of a public hearing on the formal adoption of the city budget.
According to Lin, staff expects $200,000 in revenue from sales taxes, another $200,000 in revenue from property taxes, $50,000 from investments and $150,000 from charges for city services.
She said sales, property and utility users taxes make up 68 percent of Seal Beach’s tax revenues.
Lin said the revenues from the Utility Users Tax was flat. She said a lot of Seal Beach residents no longer used landlines. Lin said she was hoping people would shop and eat more to generate more sales tax.
Howard Longballa, of HdL Companies, said 41 percent of Seal Beach’s income comes from gas station. Longballa said Seal Beach is currently outperforming the state in this area. He also said the housing market was coming back “slightly.”
Staff proposes spending $30,936,473. Of that figure, 30 percent—an estimated $9,190,528—will be spent on the Seal Beach Police Department.
In many cities, half or more of the budget is spent on the police.
Lin said fire protection services will cost 18 percent of the budget—$4,267,862.
Pension bonds for police and fire, both principal and interest, will cost $1.6 million. The 2012-13 fiscal year will be the last year the city has to pay the fire pension bond.
Staff has received supplemental requests for $100,000 for the Park Master Plan, $45,000 for the GIS Upgrade, $18,000 for a legal review of the city’s Municipal Code, $45,000 for furniture for the Police Department and $24,000 for two the replacement of two lifeguard towers.
Among the items not budgeted are $310,000 for a Fleet Management Plan.
Consultant Cathy Staniford, a partner in Management Partners, advised the City Council to adopt a long-term replacement schedule for Seal Beach vehicles and equipment. Staniford said the council should move $310,000 a year from the general fund to the vehicle replacement fund.
Staniford said Seal Beach has 96 vehicles. Police patrol units should be replaced every four years or every 100,000 miles. She said lifeguard pick up trucks should be replaced every five years because of exposure to salt in the air. She said most other pick up trucks could be replaced every 10 years. She said one of the reasons her firm recommended replacing vehicles based on mileage was because Seal Beach is a small city.
Staniford said Seal Beach created a Vehicle Replacement Fund in 2008, but had made no contributions to that fund since. She proposed the beginning balance for the vehicle fund in 2012-13 should be slightly less than $1.8 million.
She recommended charging departments out of their operating budgets for the cost of their vehicles.
Staniford also recommended hiring a full time employee to maintain the vehicles. She said Seal Beach has not done effective preventative maintenance on its vehicles.
Capital Improvements
Assistant City Manager/Public Works Director Sean Crumby presented the staff report on the proposed five-year Capital Improvement Plan on Thursday, May 31.
According to the Crumby report, staff has identified $102 million in needed capital improvements.
Staff is recommending $12.5 million be spent on capital improvements in 2012-13. Seal Beach budget $20.1 million in fiscal year 2011-12.
Crumby said Seal Beach Pier projects had been delayed due to uncertainty about the possible remodel of Ruby’s restaurant, which is located at the end of the pier. The Ruby’s lease expires in October.
Crumby said staff proposed expanding the public gardens in Edison Park. Crumby said staff budgeted $10,000 for the garden project. He said staff would like to establish uniform-sized plots so the city can charge a uniform flat fee.
As for the Main Street Lighting Project, Crumby said members of the community had expressed a desire for low-level lighting with a softer impact for Main Street. He said the community wants a romantic ambiance. He said many requested electrical outlets on Main Street.
Some residents, however, have proposed projects of their own to the council. The requests submitted to the council this year included the following:
- Several residents called for the study and possible construction of an underground storm drain on Westminster Avenue. The money would either come from the General Fund or from grants.
- Shellee Reeves proposed a beautification project for Pacific Coast Highway and Fifth Street, with residents donating the plants.
- Stuart Bulloock advocated building a skate park in the windsurf park near the River’s End staging area. Bulloock proposed that the money come from public donations to fundraising events.
- Patty Campbell of College Park East, called for construction of new curbs on Lampson Avenue and the installation of k-rail to the median. The money could come from the General Fund or from the surplus Lampson Avenue Medians Fund.
- James Caviola, a City Council appointee to the Tree Advisory Committee, has requested $30,000 for the Annual Tree Planting Project. Last year the council budgeted $10,000 for tree planting.
- The Chamber of Commerce had multiple requests: $5,000 for the summer concert series so vendors would not have to be brought in from out of Seal Beach; $700 to sponsor one summer concert and for the city to waive all permit fees for all events held by the Chamber.
- Old Town area dentist Jorge Oaxaca wants Seal Beach to set up a citywide WI-FI system, with private donations of hardware and the city paying for the on-going Internet fees.
