The Long Beach City Council reviewed the final figures for the 2024 fiscal year budget, totalling $813.4 million once the dust had settled, with a $2.3 million surplus to carry over.
Although the city council approved the 2024 budget in September 2023, those initial numbers do not account for revenue accrued throughout the year, carry-over from the previous year, emergency reserves and one-time uses. Councilmembers review the budget throughout the year to gauge how much of a deficit or surplus the City is in, and how certain high priority projects can be supported.
The 2024 fiscal year budget used almost $27 million in one-time funds, meaning that money is not a structurally recurring part of the City’s budget. This money consisted of reserves from 2023 and Long Beach Recovery Act (LBRA) dollars.
LBRA funds are federal grants given to cities to help them recover from the impacts of the COVID-19 pandemic, and have been used to fund a wide variety of programs and projects since 2020. This is the last year Long Beach has LBRA money.
When the city council first reviewed the 2024 budget in September 2023, they predicted an $8.8 million deficit, which they planned to cover using LBRA money. In June 2024, they no longer predicted a deficit and instead predicted a $10.8 million surplus. This change was largely due to staff vacancies in City departments, revenues from utilities, emergency ambulance fees, a transfer from the Tidelands fund and property and transit taxes.
At this time, the city council allocated $7 million from the projected surplus into the “highest priority projects” for 2025.
Major variances between what revenues the City predicted and what came in lower than expected is as follows:
- Sales and Use Tax: $2.6 million less than estimated, driven by a decline in consumer goods and auto taxes.
- Utility Users Tax and Franchise Fees: $2.2 million less than estimated, driven by lower performance in gas and electric fees.
- Interest-pooled Cash: $5 million less than expected, caused by a reduction in the City’s share into its citywide investment pool.
Revenues that came in higher than estimated include:
- Emergency Ambulance Fees: $2.7 million higher than estimated, driven by the Fire Department implementing the Public Provider Ground Emergency Medical Transportation Intergovernmental Transfer Program.
- Business License Tax: $4.3 million higher than estimated, driven by increased field inspections and enforcement.
Several departments required increased allocations beyond what they received in the 2024 budget, including Public Works, Financial Management, Fire Department, Economic Development and Health and Human Services. The $2.3 million in surplus went to these departments.
Due to higher than projected oil revenue, the Tidelands Fund ended the year with a $16.5 million surplus, with another $5 million released from reserves, ending its fund with a $21.8 million surplus. Seven million dollars went towards the 2025 budget for tidelands capital improvements.
The remaining Tidelands surplus went to various projects such as the Pike Outlets and Aquarium Parking Garage safety improvements ($1.1 million), Colorado Lagoon Open Channel project ($2.2 million) and the Belmont Beach Aquatic Center ($6.3 million).
The Marina Fund had a leftover balance of $11.5 million, and will go towards the Marine Stadium new electrical system ($1.5 million), Davies Boat launch ramp, restroom and parking lot project ($2 million) and the entrance channel dredging and Peninsula Beach ($8 million).
