Friday, July 11, 2025
The City of Long Beach is moving forward with its financial planning for fiscal year 2025-26 through public hearings and City Council deliberations focused on the $108 million proposed budget and capital improvement program.
At the council meeting and public hearing on May 20, officials outlined plans for a modest tax levy increase of 2.5 percent, below the state-mandated cap. The adjustment comes with a $2.4 million funding loss, but the city intends to use reserve funds to help mitigate the impact on taxpayers.
“We are not going to have the residents balance the budget again,” Councilman Mike Reinhart said. “They have paid and paid and paid. We are not going to take away services or start taking people away.”
An increase in property values is projected to generate an additional $1.4 million in revenue without raising the overall tax rate, as well.
Significant capital projects planned over the next five years include a $6 million to $7 million West End parking garage with 72 to 132 intended to alleviate parking shortages, and a replacement of the artificial-turf field at the recreation center, at a cost estimated between $1.2 million and $1.3 million. The city is emphasizing preventive maintenance programs and the development of centralized work-order and asset-management systems to improve infrastructure oversight and reduce long-term expenses. It is also actively pursuing grant funding to support these projects and minimize the need for borrowing.
Public input during the hearings reflected concerns about Long Beach’s expanding budget and its impact on taxpayers. Resident Tim Kramer noted that the city’s budget has nearly doubled in 15 years. Kramer emphasized the critical need for new revenue streams, arguing that it is “vitally, critically important” to find ways to generate income.
City Manager Dan Creighton acknowledged those concerns, noting that city official are actively exploring potential developments like a marina and other redevelopment projects. The council expressed unanimous support for finding innovative revenue sources without increasing the tax burden, and Councilman Chris Fiumara highlighted the West End parking garage as a potential revenue generator that could bring in up to $600,000 annually.
Community activist James Hodge advocated for the Martin Luther King Center, criticizing its absence from the capital plan. He emphasized that the center serves the lowest-income area in the city, providing critical services to hundreds of children and seniors. Hodge argued that while the city discusses parking and other projects, the MLK Center’s infrastructure needs, including water leaks and building maintenance, are being overlooked.
“If I don’t do what I’m doing, what kind of community representative or leader I am? I’m not blaming you,” Hodge told the council members. “I thank you 100 times, and I will continue thanking you as I continue advocating.”
Financial planning considerations included upcoming contracts for the city’s fire and police departments, which are expected to have a notable impact on the budget. Rising insurance and pension costs, as well, continue to present challenges. While some council members expressed confidence in managing those expenditures without excessive reliance on reserve funds, others advocated for spending reductions to mitigate future fiscal risks.
The proposed budget includes a significant increase in water rates — approximately 42 percent over two years — which generated concern among council members about the financial burden on residents, especially those already facing economic difficulties. Sewer rents are set to decrease as part of the fiscal plan. Despite the substantial costs, the capital improvement program is considered essential for maintaining city infrastructure over the next five years.
Council members also addressed the need for greater transparency in budget presentations and improving residents’ accessibility to financial data. And efforts to control discretionary spending, particularly overtime costs, and to enhance procurement efficiency were described as ongoing priorities.
“In two months, you’ll be able to go on the city’s website, click on the link and see how every single one of your dollars is spent,” City Comptroller Inna Reznik said. “You’ll be able to put in your total tax bill, and you’ll see how much is spent on police, fire, salaries and more.”
Additional budget-related matters included the acceptance of charitable donations for improvements such as doors that comply with the Americans with Disabilities Act at the recreation center and temporary floodlights at the Magnolia fishing pier, as well as approval of grant-funded equipment purchases for the Police Department.
