City projects balanced budget in next fiscal year

By The Malibu Times · Mon Apr 15 2013

The Malibu City Council will hear a staff report next Monday, April 22, projecting a balanced budget for the city in the next fiscal year, as well as greater-than-projected reserves. 

Staff is projecting General Fund revenues of $21.9 million and expenditures of $21.8 million. The city's reserve fund, formally titled the General Fund Undesignated Reserve Fund, is projected to be $12 million. That number meets a council goal set last year (and first proposed in 2011) of always holding in reserve at least 50 percent of its yearly operating budget in case of emergency. 

The $12 million is more than $2.1 million more than anticipated, according to the staff report, which was released Friday (see the full budget attached left). 

"This significant increase is due to the $1 million reimbursement that the City received from the Civic Center Wastewater Treatment Facility Communities Facilities District; $1 million of additional General Fund revenue and conservative spending in Fiscal Year 2012-13," the report states.

Revenues for each of the city's tax revenue sources--property tax, documentary transfer tax, transient occupancy tax, utility user's tax and sales tax--are expected to increase in the coming fiscal year.

The documentary transfer tax revenue is projected to increase $85,000  from the prior fiscal year due to increased real estate sales, according to the report. Several new retail and restaurant outlets are expected to contribute to a $225,000 increase in sales tax revenue. 

Total projected increases in revenue from the previous fiscal year are $985,000.