Facilities upgrades, infrastructure repair and replacement of outdated software systems are just a few of the recommended investments for more than $56 million in one-time funds that will be available to the City of Long Beach in the next fiscal year.
This additional money comes from a combination of the $37.5 million in expected one-time revenue announced in March–which includes IAM pension savings, FY11 transfers and other RDA income–as well as new money earned not only though this year’s Uplands Oil sales, but also the sale of City Hall East ($2.05M) and so-called “triple flip” money from Los Angeles County ($4.4M) given to Long Beach for administrative overcharges stemming from 2004’s Prop 57 reshuffling.
In a memo released by City management last week, proposed uses for the funds include projects that would not otherwise happen with the limited general fund monies, such as developing an online new-employee orientation, library roof replacements and holding a second fire recruit academy.
Most of the $56.8 million is being considered part of the annual budget process, but some of it has already been directed towards streets, sidewalks and park facilities. In April, City Council voted to split $5.4 million evenly between all nine council districts for parks capital projects, street replacement, slurry seal and sidewalk replacement.
City Council will vote tonight whether or not to allocate another $6.45 million to the same goal.
{loadposition latestnews}While the majority of the one-time funds are expected to target visible changes that residents will see every day, management has also prioritized upgrades to critical operating systems that are in dire need of replacement. The finance and human resource systems, for example, are tremendously out of date and according to the memo, “do not meet [the City’s] needs for fiscal analysis, reporting, transparency or functionality.”
Replacing the inefficient system will cost $30 million with $10 million coming from the one-time funds and an estimated $10 million coming through the general fund. Other money recommended for critical operating systems includes $150,000 to upgrade Parks, Recreation and Marine’s reservation system technology and $356,000 for completion of the phone system upgrade that has still not hit several City departments.
Though City management recommends that the entirety of the $56.8 million be spent during FY14, at least one councilmember sees a missed opportunity to save some for the future.
“While the City must make many of these needed investments and avoid the false ‘cost savings”‘of deferred maintenance, I also believe we should put some money aside for the future,” said 7th District Councilmember James Johnson. “That is why I will be advocating for some money to be set aside for unfunded liabilities or reserves. By planning for the ‘rainy days’ that are sure to come, we can best protect vital services for the long run and ensure that we are passing on a great city to our children, not a mountain of debt.”
In a three-year fiscal outlook presented to City Council in March, Long Beach is on pace to eliminate its deficit in FY14 and will actually see a surplus of $3.6 million. FY14 will also bring $10.7 million in new and ongoing revenue to the general fund, an amount that is expected to grow through FY16.
On July 3, the proposed budget will be submitted to the mayor and in early August, the mayor will submit his proposed budget to the Council.
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