Long Beach budget analysts had projected a $36 million deficit for the 2023 fiscal year but increases in tax revenue could make that deficit smaller.
Both the city’s operating and emergency reserves could be reduced below minimum levels outlined by city financial policy, with the operating budget being drained to near zero if the council approves the proposed budget adjustments Tuesday.
A hiring freeze and the cancellation of some city projects are options being weighed as the city tries to re-balance a budget that now has a shortfall of up to $41 million.
The study session on Tuesday could shed light on early directions the council might take in terms of what departments of services could be targeted for reductions in the coming months.
It took less than two months for the City of Long Beach to challenge the results of a lawsuit it lost to a resident challenging the city’s practice of charging its own water department fees for access to its water and sewer lines, but this challenge will likely be resolved at the ballot box, not inside a courtroom.