Malibu Budget for FY 2010-11 Is City Council’s First Order of Business

• Sheriff Is Almost 29 Percent of Municipal Costs

BY BILL KOENEKER

The newly reconfigured Mal-ibu City Council had little time to settle in on the dais last week before they were confronted with the preoccupation of most lawmakers today, the budget.

They are apparently luckier than many of their colleagues in other municipalities because they were presented with a proposed balanced budget.

Assistant City Manager and Administrative Services Director Reva Feldman laid out the proposed general fund budget for 2010-2011, saying the budgetary goals are expected to be $20.6 million in revenues and $20.6 million in expenses.

The city’s estimated undesignated general fund reserve at June 30, 2011, is $9.4 million. That includes $510,539 from the Trancas Canyon Park Reserve, which is being transferred back into the undesignated general fund and $140,000, which is being transferred from the Prop A special revenue fund as the exchange of funds with another city, according to Feldman, who said the total projected general fund balance at the end of the fiscal year would be $10.3 million.

Council members were told the good news is that property tax revenue is expected to increase by $100,000 from last year. The bad news is that other sources of revenue, such as the utility users tax and sales taxes, are expected to decrease $100,000 from FY 2009-2010.

“The transient occupancy tax is budgeted to increase $50,000. Minor increases in many other general fund revenue sources will help offset the decline of these tax revenue sources,” she said.

Feldman noted that while there have been many slight declines, the city’s revenue is about on par with last year.

The capital improvements budget totals $13.4 million for the next fiscal year, according to Feldman, who said some of the highest costing projects include the library improvements at over $5 million and city hall improvements at $4.7 million. Legacy Park improvement costs total over $2.3 million.

Feldman explained that some of the capital projects are grant funded and the revenues have been budgeted from those grant funds. For example, $5.8 million will be transferred to the capital improvements fund to reimburse expenditures for the library. That $5 million in funds come from Los Angeles County.

An additional $116,706 is needed—a two percent increase—to cover the law enforcement contract with the Los Angeles County Sheriff’s Department. The total operating budget for law enforcement is $5.9 million.

Another expenditure increase noted by Feldman in her staff report is street maintenance on city roads, which includes $526,877 that is being funded by reserves from prior years.

The Consumer Price Index increased. It was 1.4 percent and is reflected in increased cost of living adjustments for city employees, according to Feldman.

Retiree benefits also played a role in increases. The same as last year, the budget includes $264,756. There is also another $275,000 annual ongoing expense for the state-mandated retiree other benefits program, such as health coverage and insurance.