City to spend $2.2 million less than expected

Alicia Robinson

Because of an unexpected sales-tax influx and other midyear budget

changes, the city will spend $2.2 million less from the general fund

than expected.

That’s good news, but council members say the city still needs to

tighten its belt or find more money.

When the budget was adopted at the beginning of the fiscal year,

which runs from July 1 to June 30, officials expected to spend $4.3

million of the money left in the general fund from the previous year,

Costa Mesa Finance Director Marc Puckett said.

The state’s budget was approved after the city’s, and changes to

some state funding has left Costa Mesa slightly ahead of projections.

Also, sales taxes have generated about $2.8 million more than

anticipated since July.

“That’s a significant improvement from where we were when the

budget was adopted,” Puckett said “The primary source that we

attribute it to is sales tax and also a slight increase in our

property taxes.”

Instead of spending $4.3 million from the general fund balance,

the city will only need $2.1 million.

But the good news does not mean officials can toss the calculator

and balance sheet out the window.

“We’re still in a situation where we’re spending more than we’re

bringing in,” Puckett said. “We have to be in a position where our

revenue, on an ongoing basis, is equal to our expenditures.”

The revised budget includes expenditures of $88.4 million and

revenues totaling $86.4 million.

The council has looked at various ways to boost revenue including

increasing the business-license tax and transient-occupancy tax, and

in November, council members voted to charge waste haulers a

sanitation-franchise fee.

A proposed emergency medical service subscription program will be

discussed at Tuesday’s council meeting.

The recent boost in revenue doesn’t mean the council should scrap

possible new revenue sources because the city’s job is to provide the

services that residents want, such as more parks and recreation, and

those cost money, Councilwoman Katrina Foley said.

“I think you can tell what residents want by who is elected,” she

said. “Linda [Dixon] and I both ran on campaigns of quality community

amenities.”

While revenue has increased, the city should remain wary of

changes that may come from Sacramento, Mayor Allan Mansoor said. But

Mansoor has said he favors trimming the budget over imposing new fees

or taxes.

* ALICIA ROBINSON covers government and politics. She may be

reached at (714) 966-4626 or by e-mail at alicia.robinson

@latimes.com.