The Malibu City Council at its Monday night meeting voted to adopt both the 2009-2010 fiscal year budget and a resolution to help prevent the state of California from seizing $2 billion in statewide municipal property taxes to help balance its more than $24 billion budget deficit.
The council also voted to levy assessments for the maintenance, repair and improvements of landslide mitigation services in the Big Rock Mesa, Malibu Road and Calle Del Barco areas.
Totaling more than $36.5 million, the approved city 2009-2010 fiscal year budget includes expense reductions and fee increases the city has made after determining in April that its 2008-2009 fiscal year budget is $1.2 million less than originally projected.
Such changes include $300,000 saved by the termination of three city positions (senior civil engineer, division manager and part-time public works office assistant), and a $15,000 total decrease in authorized city salaries, among others.
For additional revenue, the city last week announced it would on July 1 begin collecting Transient Occupancy Taxes of 12 percent of rental income from private homes leased for 30 days or less. (A property owner will have to pay $120 per $1,000 in rent charged.)
The tax will generate an estimated $200,000 per year and will require property owners of the short-term rentals to register with the city and obtain a transient occupancy registration certificate. A one-time registration fee of $25 per property will also be implemented.
Despite its recent budget cut, the city stands to lose another $700,000 and myriad city services if the state decides to borrow $2 billion in statewide cities’ property taxes as part of a plan to address what could amount to a more than $24 billion budget deficit.
The plan, unveiled by Gov. Arnold Schwarzenegger after voters on May 19 rejected a batch of ballot measures intended to generate $6 billion through mid 2010, would also hack billions from education, healthcare, law enforcement and social programs. If enacted as an urgency statute, the plan could be become effective July 1.
Thus, council members on Monday night adopted a resolution declaring that the proposed tax acquisition would create a severe fiscal hardship, as property taxes amount to one-third of the city’s revenue. The resolution is intended to support the League of California Cities’ efforts to prevent the state from collecting the taxes.
The state’s possible property tax collection could jeopardize capital for numerous projects within the City of Malibu relating to water treatment, computer updating, street improvements and park construction.
Should the state decide to collect the taxes, Administrative Services Director Reva Feldman said the city would meet to discuss budget modifications.
Included in the 2009-2010 fiscal year budget are the assessments approved by the council on Monday night for the maintenance, repair and improvements of landslide mitigation services for the district areas of Big Rock Mesa, Malibu Road and Calle Del Barco.
The total 2009-2010 fiscal year levy for continued maintenance and capital improvements on Big Rock Mesa is $256,526. The annual assessment will amount to $726 per single-family household, a $280 increase from the cost during the 2008-2009 fiscal year. The increase is due to anticipated capital replacements scheduled for this fiscal year, as stated in a city report.
Malibu Road’s total levy amounts to $46,513 for continued maintenance and capital improvements, with each single-family home assessed at $465. However, the city anticipates Malibu Road will incur a $1,544 deficit due to delinquency of tax payments.
The predicted deficit has not yet been factored into the 2009-2010 fiscal year budget, and staff in the upcoming year will consider a ballot measure to increase assessments to reduce the potential of deficits in future years.
The total 2009-2010 fiscal year levy for Calle Del Barco totals $95, with each single-family household assessed at $1. The city had a large surplus of funds due to collection of delinquent payments.
Meeting actions
€ Directed staff to obtain a minority report from the View Protection Task Force.
€ Authorized the city manager to execute the Community Recreation Agreement with the Santa Monica-Malibu Unified School District allowing the city to operate and maintain Malibu Equestrian Park.
€ Appointed eight local students and two alternates to serve one-year terms on the 2009-10 Harry Barovsky Memorial Youth Commission.
€ Authorized the mayor to send a letter to the U.S. Board on Geographic Names in support of renaming Negrohead Mountain, located near SantaSeminole Hot Springs, to Ballard Mountain.