Council approves city budget

The city council voted unanimously to approve its proposed spending plan for the 2015-16 fiscal year at Tuesday’s council meeting. The budget totals $86 million, a 1.91 percent increase over the current spending plan. The tax levy would increase 3.18 percent, to $33 million, falling below the state tax cap.

This is the fourth consecutive balanced budget presented by the current administration, and the third consecutive spending plan to come in under the tax cap. The city has not only eliminated a $14.7 million deficit, but built a reserve fund totaling $7 million, a nearly $22 million turnaround.

“This budget is a wonderful sign of progress,” said Council President Len Torres. “While there is still much work left for us to do, this responsible, balanced budget is another great indicator that this administration is on the right track. We are truly proud of how far we’ve come.”

As a result of the city’s compliance with the tax cap, qualifying homeowners will receive 100 percent reimbursements of this year’s tax hike, meaning that there will effectively be no tax increase. To be eligible, homeowners must be able to prove that their property in Long Beach is their primary residence and that their total household income is under $500,000.

The city will also appropriate $635,000 from the fund balance and $155,555 from a water fund surplus to pay off debt and keep the proposed tax levy low. “I’m proud that we’re able to save residents $55 per household by paying back the previous administration’s deficit with our surplus — a surplus that this administration generated through the terrific work our employees did after Sandy,” Councilman Anthony Eramo said.

Officials attributed the creation of a reserve fund to the city’s cost-saving decision to use “in-house” labor after the storm. City crews worked to on approximately 200 infrastructure projects that were ultimately reimbursed by the Federal Emergency Management Agency.

“The hardworking men and women of CSEA have played a significant role in saving taxpayer money, and they should be commended for that,” Eramo added.

The city saved some $4.9 million on those recovery projects, officials said.