Public and council weigh in on Costa Mesa’s preliminary $155-million budget

Costa Mesa residents and City Council members took their first crack at the city’s preliminary $155-million budget for the next fiscal year during a study session Tuesday at City Hall.

Some of the approximately 15 people who attended implored city officials to make sure money for particular projects — such as renovating the tennis center or upgrading the video system in the council chamber — is included in the spending plan.

Others, though, said Costa Mesa would be better served by setting aside additional money to help cover the city’s pension debt, which totaled about $246 million in 2015.

“I encourage you to prudently look at what’s going to happen to our pension liability in the next few years and to set aside money and to carefully think about borrowing any money,” said Wendy Leece, a former council member who now is on the city’s Finance and Pension Advisory Committee.

On the whole, the city’s preliminary budget for 2017-18 is almost $10.4 million more than in the current fiscal year.

The increase is largely “due to an increase in pension costs, assumption of increased number of filled positions, increases in utilities and certain other operating costs,” City Manager Tom Hatch wrote in his budget message.

Spending on capital improvement projects is projected to go from just over $16 million in the current budget to almost $19.6 million in the next fiscal year, which begins July 1.

The increased figure includes funding for major projects such as reconstruction of Fire Station No. 1 on Royal Palm Drive and redevelopment of Lions Park to accommodate a new library.

Additional revenue is expected to offset the increases in spending and keep the budget balanced, according to the city.

“We have built realistic revenue forecast assumptions and tried not to be either too positive or too pessimistic,” Hatch said Tuesday.

Included in that calculation is new fee revenue expected to come from Measure X, a voter-approved initiative that allows some medical marijuana businesses to open in the area north of South Coast Drive, west of Harbor Boulevard, south of MacArthur Boulevard and east of the Santa Ana River, though not in South Coast Collection.

Such businesses will have to pay about $49,000 in fees just to obtain business and conditional use permits necessary to open.

Additional fees are anticipated as a result of a recent council decision to have the Costa Mesa Fire & Rescue Department assume responsibility for providing all local ambulance transportation services.

Also included in the preliminary budget are proposals to increase assorted fire and parks fees that city officials say are well below the amount needed to offset costs.

Generally speaking, such fees have not been increased since November 2008, Hatch said, even as the costs of providing city services “have definitely gone up.”

“We do have, from our staff’s perspective, the lowest fees in the county,” he told the council. “We want to continue to provide quality services and ensure those services are meeting the expectations of the community and you.”

Suggested fee increases would apply to things such as park rentals, field permits for model airplane operators, Senior Center travel trips and youth camps and programs.

The proposed adjustments would “ultimately assist the city with maintaining our same level of service and capacity,” Recreation Manager Justin Martin said, especially as participation in recreation and park programs has increased in recent years.

Mayor Katrina Foley said she wasn’t thrilled with the idea of raising fees for programs that cater to families and senior citizens.

The benefits of such offerings, she said, far outweigh the costs to the city.

“I don’t think we should be balancing our budget on the back of seniors and working families,” she said.

Also proposed are increases to fees for various permits, plan reviews and inspections required by the fire department.

The preliminary budget can be viewed at costamesaca.gov, at the Senior Center, 695 W. 19th St., in the city clerk’s office at City Hall, 77 Fair Drive, or at the Donald Dungan and Mesa Verde library branches.

A community budget meeting is set for 5:30 p.m. May 18 in Conference Room 1A on the first floor of City Hall.

[email protected]

Twitter @LukeMMoney