MALIBU : Council Adopts Budget With $339,720 Surplus

The City Council on Monday adopted a $7.6-million budget that includes a surplus of $339,720.

The city anticipates revenues of about $7.9 million for the fiscal year that begins July 1, $339,720 over expected expenditures, which will be about $300,000 more than last year.

Although disasters such as winter storms and last November’s wildfires and a decrease in revenue from sales and utility taxes took their toll on the budget, the city managed to cut costs by eliminating an administrative assistant position and by replacing contract services with five salaried employees for its public works and building services’ departments.

Budget revenues were also bolstered by a $1.1-million payment from Los Angeles County, a windfall from the settlement of a 1992 lawsuit the city had filed over miscalculation of property tax rates.

The budget, which includes no new or increased services, was presented to the council after Finance Director Mark Lorimer explained the erroneous addition of nearly $1 million in nonexistent cash reserves to the city’s budget over the last two years.

Lorimer told the council that he had committed the error two years ago when he used a projected number for the fund balance, instead of actual figures from a 1991-92 budget audit. That discrepancy was carried over from last year’s fund balance to this year’s balance, but Lorimer said that there was no real money involved.

Unsatisfied with Lorimer’s explanation, Mayor Jeff Kramer has asked city auditor Peat Marwick to review the matter.