HUNTINGTON BEACH : City OKs Budget That Cuts Jobs, Hikes Fees

The City Council has approved a $97-million budget that increases beach parking fees and business license taxes, and eliminates five unfilled full-time jobs and 7.5 part-time jobs.

City Administrator Michael T. Uberuaga warned, however, that the city may cut staff at the Police and Fire departments if voters in November do not extend a statewide half-cent sales tax.

Uberuaga said the city stands to lose about $1 million a year in revenue if the sales tax extension is defeated. In that event, the city may have to eliminate three police positions and two Fire Department jobs.

Only Councilman Jim Silva, who spoke out against business license increases, voted against the budget at the council session Monday night.

“We’re in the middle of a recession, and I can’t see raising taxes and fees,” he said.

A week ago, Councilman David Sullivan asked his colleagues to ask employees to take a 5% pay cut to balance the budget. But no one has made that request publicly, and the final budget approval didn’t include any employee pay cut.

The council was forced to find $1.5 million in savings to deal with a loss of revenue caused chiefly by the state’s taking property taxes that normally belong to the city.

To raise some revenue, the council increased the year-round beach parking fees to $6 a day, which is expected to bring in about $50,000. The city currently charges beach visitors $6 a day to park on weekends and holidays in the summer. It is $5 the rest of the year.

The city expects to raise about $55,000 by imposing a $10 annual renewal fee on business licenses and by requiring payment of $15 in cases where licenses are sought but not granted.

The council retained several programs that Uberuaga had recommended be cut, including the resurfacing of tennis and racquetball courts, a maintenance program for both computers and storm drains and purchase of media materials.

About half of the $1.5-million shortfall was absorbed by transferring $755,000 to the general fund from gas tax, sewer, drainage and other funds. A total of $500,000 will come out of the gas tax fund, delaying a sidewalk and street project.