> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # We’re in the money: Budget grows - URL: https://www.smdp.com/were-in-the-money-budget-grows/ - Published: 2005-05-24T15:00:00.000Z - Updated: 2026-10-23T07:11:29.000Z - Author: Ryan Hyatt - Tags: Government & Politics, Santa Monica, #archive-import, Homeless *City Hall projects surplus for first time in three years, unveils $418 million spending plan for 2005-06* CITY HALL — A recovering post-9/11 economy is starting to pay off for City Hall, where officials project that next year’s budget will have a surplus for the first time in three years. Officials last week unveiled next year’s proposed city budget, which has grown more than $50 million since last year. The surplus is attributed to a strengthening local economy and marks the first time after the recession City Hall has gone into a financial year with revenues exceeding expenditures — pegged at $433 million and $418 million, respectively, for the 2005-06 fiscal year. However, despite the upswing in the local economy, city officials are still proceeding with caution. “Economic conditions are improving and we’re very encouraged, but not exuberantly encouraged by what’s happening,” said City Manager Susan McCarthy on Monday. She added that the rising cost of living in Los Angeles, increased fuel and energy costs, and additional money going toward city employees’ benefits all add strain to City Hall’s expenses. Next year’s budget also accounts for additional operating expenses to staff new facilities like the new Main Library and the Virginia Avenue Park expansion. IT’S PAYBACK TIME Next year’s $15 million surplus will most likely be spent immediately — all in the form of pay-backs from various City Hall coffers, including $10 million to pay off a loan from the water fund so the city could purchase the old Fisher Lumber site for a possible park at 14th Street and Olympic Boulevard. An estimated $300,000 surplus is expected for the 2005-06 budget after loans are paid back and money is set aside for various anticipated projects, like the renovation of the old Marion Davies Estate at 415 PCH. City Hall’s contribution, along with a $21 million grant from the Annenberg Foundation, will be used to rehabilitate and create community recreational space on the five-acre site. The council this week will hold study sessions to pour over the budget, which contains thousands of pages and details line item revenue streams and expenditures. City staffers plan to present a balanced budget to the City Council for approval during a June 21 public hearing. City Hall’s general fund grew about $9 million over last year, with $3.2 million extra generated from the hotel bed tax increase, passed by voters last November. Another $5.8 million in growth stems from increased sales taxes, according to Steve Stark, City Hall’s finance director. BREAKING IT DOWN Local taxes will make up $146 million, or nearly 70 percent of City Hall’s funding. They include: the utility users tax ($30.6 million); sales tax ($30.3 million); transient occupancy tax ($27 million); property taxes ($26.1 million); business license taxes ($19.2 million) and all other taxes ($13.5 million). In addition to the money it receives from taxes that go directly into the general fund, City Hall also receives $60 million from its Big Blue Bus service; $41 million from its water, wastewater and solid waste services; $42 million from its redevelopment; $17 million through its self-insurance; $15 million through the housing authority; and $8.3 million through its vehicle management. Of City Hall’s $418 million in estimated expenditures, “general expenses” account for roughly half, or $208 million of overall projected expenses — 67.7 percent go toward city salaries, benefits and retirement. In addition, supplies consume roughly $52 million, or about 25 percent, of the general expenses. Money earmarked for capital improvements make up a smaller portion of next year’s budget, roughly $15 million, or 7 percent of the general expenses. City Hall’s Big Blue Bus system makes up $49 million, or 12 percent, of next year’s overall projected expenses. Redevelopment will likely account for another $43.7 million. City Hall’s solid waste, wastewater and water management services together will account for $48 million (or 12 percent) of the expenses. All other expenditures, including the housing authority, vehicle management and the city’s self-insurance will account for $36 million, or nearly 9 percent of the budget. PRIORITIZING McCarthy said in putting together the proposed budget, staff considered the ongoing requests of elected officials and members of the community, which were discussed during the mid-year review process earlier this year. Priorities that the City Council have voiced its support for include better management of the impacts on the community from the homeless community; improving the quality of life for the Pico neighborhood and improving customer service at City Hall, to name a few. Two additional “homeless liaison” police officers will be hired specifically to assist homeless individuals, and more park rangers also will be employed to patrol the city’s parks. A graffiti technician will be hired to address increased street art in the Pico neighborhood, and another position is to be created to assist with an at-risk youth program run by City Hall. “The budget plan is to meet the growing needs of the community,” McCarthy said. According to McCarthy, a number of Santa Monica’s capital improvement projects, conceived during the economic boom of the 1990s, also are coming to fruition. “People in Santa Monica will have some wonderful things from the legacy of the ’90s,” she said. McCarthy said in addition to the Virginia Avenue Park expansion, Santa Monicans can look forward to the new Santa Monica Library opening in January, followed by the creation of the Airport Park, expected to be ready in August of 2006\. But with those projects come increased operational costs, which next year’s budget takes into account. City Hall plans on hiring two new staff members for the Virginia Avenue Park expansion, slated to open this October. The expansion underway at the 9.5-acre park will include a campus of buildings to house the Police Activities League gym, community meeting rooms, a youth center and a police substation. One of the new staff positions for Virginia Avenue Park would be an adult and youth programming coordinator. The other post would be a neighborhood services coordinator. City Hall is not plan-ning on hiring any additional officers for the new police substation at the park, instead, officials hope to reconfigure current police staffing to accommodate the site. McCarthy said other investments will be made in improving the city’s Web site to enhance its customer service online and improving wireless communications at new facilities such as the library. “We are trying to take advantage of the city’s fiber optic network,” she said. TURNING THE LIGHTS BACK ON Over the past three years, City Hall has made cuts in nearly every department to account for multi-million dollar deficits. As a result, many city services have been cut. “One of the things about belt-tightening is that it makes you look at your pro-gramming more closely,” McCarthy said. “There were little budget decisions in each department, and most of what went on were small changes designed not to harm. There was no high drama.” But ignoring landscaping, street lighting and other neighborhood upkeep projects for too long could become problematic. That’s why next year’s budget aims to restore many services left by the wayside. McCarthy said extra efforts will be made to trim trees and maintain city landscaping throughout Santa Monica, efforts presently on the backburner. “As usual, we tried to listen to what the council and community has been saying it wants,” McCarthy said. “We are always trying to respond to those issues. Fortunately, we are more capable this year than we have been in the past couple of years.” ![](https://storage.ghost.io/c/55/9f/559f9abc-8372-4a2e-8c2d-27386da4e363/content/images/2026/10/052405-01_01.jpg) *Originally published in the Santa Monica Daily Press print edition on May 24, 2005.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/052405.pdf?ref=smdp.com)