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Politics & Government

City Council to Vote on $33M Budget Wednesday

City Manager Gary Brown will present the council with a balanced budget but warns the city faces "sizable financial challenges arising from the economy and the State of California."

The Imperial Beach City Council is expected to vote Wednesday on a proposed $33.2 million operating budget that is balanced but may need revisions if the economy worsens or California eliminates redevelopment agencies statewide, said the city manager.

Based on a five-year outlook and a two-year history of actual expenses, the city's proposed general fund budget is balanced over the next two years, according to a staff report. However, the situation could change due to factors out of the city's control.

City Manager Gary Brown said both the city budget and general fund are in a "precarious" balance for the the next two years under current economic conditions. A further decline in property tax revenue, renegotiation of the contract with the Sheriff's Department, elimination of redevelopment agencies statewide, changes in Port of San Diego contracts, and replacement of city infrastructure could tip the general fund out of balance.

Find out what's happening in Imperial Beachwith free, real-time updates from Patch.

"Again this year the city is faced with sizable financial challenges arising from the economy and the State of California," stated Brown in the staff report.

Though he said a key challenge is that the administration of Gov. Jerry Brown is "threatening the elimination of redevelopment agencies, a very effective tool to revitalize" cities statewide.

Find out what's happening in Imperial Beachwith free, real-time updates from Patch.

If California's budget eliminates the Imperial Beach Redevelopment Agency, the result will be a $300,000 gap each year in the operating budget. Included in the budget is a resolution authorizing the two-year appropriation of redevelopment agency funds for 2011-13.

The proposed operating budget for the 2011-12 fiscal year, which begins July 1, is $33.2 million. The proposed budget for the 2012-13 fiscal year is $33.6 million. Of those totals, the general fund represents $16.96 million in 2011-12 and $17.12 million in 2012-13.

Staff reports project Imperial Beach to end the current 2010-11 fiscal year on budget.

Brown said the cost saving proposals are already incorporated into the budget and city staff will continue to propose additional measures throughout the year. Currently projected savings come from fewer jobs, increased cell tower revenue, and using centralized purchasing to lower office supply cost.

City staff estimates that residents of Imperial Beach pay $0.53 per capita, per day for the general fund services "such as law enforcement, fire protection, park maintenance, animal control, code enforcement, recreation, senior and other programs."

A mid-year financial report, prepared by city staff is scheduled to include a revised estimate of conditions, revised revenues and expenditures.

City Council members will meet Wednesday at 6 p.m.

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