The city of Long Beach’s administration last week proposed an $87.9 million budget for the fiscal year 2012-2013, with roughly $4 million going toward the repayment of a portion of the 2011-2012 projected deficit.
“The initial budget blueprint sketches out a responsible framework to return the city to balanced budgeting,” said a summary released by the city.
In addition, the budget proposal calls for a separate temporary inherited deficit reduction surcharge, which would equate to an 11.9% tax increase, in order to pay down Long Beach’s $10 million deficit.
According the summary, the city council has cut departmental spending, netting savings of about $920,000, and reduced management positions and salaries to save more than $635,000.
The administration will be accepting and reviewing citizens budget advisory submissions and suggestions until May 15, after which the city council will hold public budget hearings.
The city council will vote on final adoption of the spending plan on or before May 31, which will take effect on July 1.
Long Beach’s Baa3 is on review for downgrade by Moody’s Investors Service.