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South Bay Cities Aim to End Up in the Black

June 16, 1985

Following are brief summaries of budgets proposed by cities.

AVALON: City general fund expenditures are estimated to be 2% less than last year, but City Manager John Longley said there will be no significant cut in services. He said last year's expenditures were higher because of a one-time expense for road work. Other capital improvements are funded separately and the city plans major projects for the Harbor Department, including replanking the pier. The city plans total expenditures of $6.4 million on revenue of $7.4 million.

CARSON: The city manager's proposed budget is expected to be completed this week.

EL SEGUNDO: The city manager's proposed budget is expected to be completed this week.

GARDENA: City Manager Ken Landau said his budget was prepared "mindful of cost versus benefit for each city program." At the council's direction, the Fire Department will be cut from a 14-person to a 12-person minimum, but the Gardena municipal bus line will get seven new buses because of a $1-million grant from the federal Urban Mass Transit Administration. The city will issue $5 million in notes in anticipation of expected revenue to improve the city's cash flow. The city will have total revenue of $27.7 million and spend that amount. It will carry over a balance of $9.4 million from last year.

For the Record
Los Angeles Times Thursday June 27, 1985 Home Edition South Bay Part 9 Page 5 Column 4 Zones Desk 2 inches; 58 words Type of Material: Correction
The Hermosa Beach City Council this month approved a 1985-86 budget calling for $7.3 million in general fund expenditures. The budget does not require reductions in paramedic services and other city services as envisioned under a "worst-case" scenario included in the city manager's budget report. The Times incorrectly reported in an article June 16 that the city manager had recommended those reductions.

HAWTHORNE: The city manager's proposed budget will not be available until June 24.

HERMOSA BEACH: City Manager Gregory Meyer in his budget message warns, "At this juncture the city is in a financially precarious position with no effective 'excess' of general fund monies." He said the city is trying to modify services so users of specific services pay the full cost. In other areas, severe reductions in services are being recommended, including eliminating youth sports programs, funding the city prosecutor for only one court case and eliminating the paramedic program. In addition, three police officers and several firefighters/paramedics would be laid off, as would a building inspector. Meyer is also recommending contracting out more services such as landscaping and custodial work to save money. To increase revenue, Meyer is proposing raising the transient occupancy tax to 7% from the current 6% and increasing the apartment business license to $16 per rental unit from $8 per unit. The city will spend $11.8 million from revenue of only $11 million, and will have to dip into its $2.4-million reserve for the additional $800,000.

INGLEWOOD: The city will add seven officers to the Police Department after several years of gradually adding more civilian positions to the administrative side of the department. The city proposes to spend $80.4 million, but expects to collect only $77.7 million in revenue. The additional $2.7 million will come from last year's reserve of $4.9 million. City Manager Paul Eckles in his budget message said there is reason for concern about future budgets: "Recent efforts aimed at promoting new development, fighting crime and removing blight are working, but they have strained the city's budget, leaving very little margin for error."

LAWNDALE: The city manager's proposed budget had recommended eliminating one traffic car and its officer in order to offset a 7% increase in charges by the Los Angeles County Sheriff's Department, but the city council last week voted to put it and other proposed cuts back into the budget.

The proposed budget had called for total expenditures of $5.6 million because only that much is expected in revenue. The city will now have to go into its $2.9-million reserve to balance its budget. The city is one of the few that does not collect a property tax.

LOMITA: The city is proposing an 8% increase in salary for some city employees. The budget also expects to meet the 8% increase in costs in its contract with the Los Angeles County Sheriff's Department. The city also plans to buy a truck for park maintenance and resurface tennis courts. The city projects total revenue of $3.9 million and expenses of $3.2 million. Lomita also does not collect a property tax.

MANHATTAN BEACH: City Manager David Thompson wrote in his budget message to the council that the budget is "a traditionally balanced budget with revenues exceeding expenditures, and our citizens continue to enjoy the benefits of local governmental economic solvency." The city plans major capital improvement projects, including development of Marine Avenue Park; street improvements on Highland, Marine and Manhattan avenues; and replacement of some water mains. The city will spend $22 million from revenue of $22.7 million and carry forward a reserve of $10 million.

PALOS VERDES ESTATES: The city expects to receive only $7 million in revenue, but proposes to spend $8.6 million leaving only $574,854 of a $2.1-million reserve. The city has separate assessments for police and paramedic service and park and street maintenance totaling nearly $1 million and $450,000, respectively.

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