Councilman Ken Kearsley said it was the first time in history that a budget had been passed unanimously by a Malibu City Council.
The $19.5 budget for fiscal year 2001-2002 was broken into two parts: $13.5 million for operational expenditures and $6 million for capital projects.
The operational budget was 3 percent less than last year, about $405,000. The $6 million capital budget, however, was double that of last year “due to the ambitious schedule of projects slated for the fiscal year,” according to a budget message by City Attorney Christi Hogin.
Those projects include $2 million for Malibu Colony under- grounding (putting utility lines under ground), $600,000 for an annual street overlay, $500,000 for Las Flores Park, and $400,000 for Zumirez traffic realignment. Other significant capital projects include storm drainage improvement in several locations and trail improvement and maintenance at selected sites.
Capital expenditures are projected to decline over the years to come, with only a new City Hall looming as a major expense, an estimated $2.6 million between fiscal years 2002-2004.
The budget includes a set-aside of $1 million toward the goal of an $8 million general reserve fund to cover unforeseen contingencies. $1.l6 million of this fund is designated for the new City Hall, and $5.6 million is for emergencies, disaster, or economic reversal. $700,000 is dedicated to Building Safety reserves.
Other contingencies might include new state or federal funding mandates. As the budget message points out, “Several bills are pending in Sacramento, which may have a fiscal impact.” One of several assumptions the budget makes is that none of those bills will become law.
The budget also assumes that a 3 percent cost-of-living increase in the budget will be adequate. But it also assumes that the total cost of labor will increase 5 percent due to merit increases and outsourcing for certain hard-to-fill positions.
Other assumptions are that retail sales will remain constant, providing a steady source of tax revenue, and that the city’s assessed valuation will increase by 6 percent.
Sales and property taxes account for two-thirds of the city’s income, estimated at more than $8.3 million next year.
Other council business:
- The Civic Center Guidelines draft, now in its 9th revision, was sent back to committee for more fine-tuning. Discussion was postponed until the next council meeting, July 9. An indication of the scrutiny the guidelines will face arose when Malibu architect Ed Niles told the council that the city had grossly miscalculated the amount of development allotted in its Interim Zoning Ordinance (IZ0). The IZO calls for 65 percent open space on all Civic Center property.
Mathematically, Niles said, that would mean that “the actual amount of building that you can get on an acre of land is .9 percent,” instead of the 1.5 percent now being used as a benchmark by developers. The figures represent a formula called the floor area ratio used to restrict the size of a building on a plot of land.
- The council voted unanimously to release $75,000 in matching funds for the Malibu Stage Company. The money had been held back on a technicality. Residential neighbors of the community theater, however, complained that the MSC had indicated it would not live up to an agreement to limit activities at the theater to plays and rehearsals only.
“We were told that the theater would be used for exercise classes, senior activities and anything else that would keep the theater busy,” said neighbor Margaret Giuliani. The MSC season opens on July 17.
- The council adjourned in memory of John Clement, the city’s first public utilities director, and actor Carroll O’Connor, both of whom died last week.