Long Beach City Council Adopts Fiscal Year 2023 Budget

September 15, 2022September 15, 2022 LBLN

Long Beach, CA – On Tuesday, Sept. 13, 2022, the Long Beach City Council voted to adopt the City of Long Beach’s $3.2 billion budget for Fiscal Year (FY) 2023. The Adopted FY 23 Budget continues the prioritization of significant pandemic recovery support for residents and business; implements new forward-thinking initiatives that promote safety, health and quality of life; and makes strong investments in the City’s infrastructure.

“The budget adopted by our City Council is balanced, responsible, and strengthens funding for progressive initiatives that will further support the safety, health and wellbeing of our community,” said Mayor Robert Garcia.

Long Beach is a full-service city and prides itself on providing a variety of resources and services to the community, including the provision and improvement of affordable housing; support for economic development and business assistance; the overall continuum of public safety and emergency medical response; a comprehensive homelessness response; maintenance of safe, clean and accessible parks and facilities; and infrastructure and livability improvements. The Adopted Budget maintains these services at the FY 22 level, and also makes substantial new investments into many service priority areas while utilizing resources in a strategic and fiscally prudent way.

“The Adopted Budget addresses critical priorities for our community and our organization,” said City Manager Tom Modica. “I thank the Mayor, the entire City Council, the Chair and members of the Budget Oversight Committee, our Departments and our Budget Office team for their hard work and dedication throughout the budget development, review and adoption process.”

The Adopted Budget includes the following:

Measure A Infrastructure Investment Plan

A new five-year Infrastructure Investment Plan for FY 23 through FY 27 totaling $522 million. The plan is comprised of $150 million of Measure A Bond proceeds, $88 million of Measure A revenue set aside for infrastructure and $284 million of grant and external transportation funding estimates that are anticipated over the next five years.

Over the next five fiscal years, the infrastructure plan earmarks $322.2 million for mobility improvements, $48.6 million for park improvements, $49.9 million for public facilities, $81.3 million for Right-of-Way/Water Quality/CAAP Improvements, $10.0 million set aside as a critical facilities and grant match funding reserve, and $9.8 million in other critical needs support. This historic Infrastructure Investment Plan will fund over 120 unique projects throughout the City. However, this infrastructure plan is not an exhaustive listing of all expected infrastructure funding from FY 23 through FY 27. Additional funding for FY 23 and beyond will be addressed annually during the City’s routine budgeting process. This infrastructure investment plan does not include other infrastructure funding sources such as Tidelands, AB-32 or other external sources anticipated coming from the Biden Administration’s infrastructure investment plan.

Addressing Homelessness

Finding local solutions to the homelessness crisis continues to be a top priority for Long Beach, leveraging multiple City, County, State and Federal funding streams. The Adopted Budget supports existing services and recommends enhancements that further the City’s efforts to combat homelessness, including:

Adding a third Restorative Engagement to Achieve Collective Health (REACH) team, providing enhanced after-hours and weekend service.
Adding two counselor positions that will coordinate with the City’s call center to enhance communications with community members experiencing homelessness or at risk of experiencing homelessness and respond to those seeking help.
A one-time utilization of Measure A funds of $2.1 million for a two-year outreach and clean-up initiative along local riverbeds.

Community Safety

The City is committed to providing a safe community for all Long Beach residents and continues to pursue innovations and collaborative approaches towards this goal. New items in the Adopted Budget to support community safety include:

A one-time utilization of $980,000 for the Community Crisis Response Program where an unarmed, first responder team can respond to mental health, substance abuse and quality of life related 9-1-1 calls.
Creating a new Collaborative Response and Engagement (CRE) Bureau in the Police Department to facilitate innovative approaches focused on building meaningful community relationships and adding 20 new Police Officers to address root causes of crime through relationship-based community policing models (16 Bike Officers and 4 Quality of Life Officers).
Structurally adding $609,333 of Measure A funds to provide the City match funding needed for the Staffing for Adequate Fire and Emergency Response (SAFER) grant that, if awarded by FEMA, would help fund Fire Department Engine 17 operations.
Adding structural funds of $160,000 and $100,000 of one-time funds in the Tidelands Operating Fund Group to add a Marine Safety Officer position and additional resources to support lifeguard and marine safety operations (Change from Proposed Budget).

Equity, Inclusion, Health and Quality of Life Support

The City is committed to fostering opportunities for optimal health, financial security and overall quality of life for all residents across the city. The Adopted Budget makes additional investments to foster a more inclusive and equitable Long Beach, including:

Fully funding a position that will provide support for the Commission on Women and Girls, Equity and Human Relations Commission, Justice Fund, and continued support for the City’s Racial Equity and Reconciliation efforts.
Increasing structural funding by $20,000 for increased interpretation and translation services through the City’s Language Access Program (See section below for additional funding allocated as part of the City Council’s high priority projects to potentially fund at FY 22 year-end).
A one-time utilization of Measure US funds of $511,620 for Community Based Grants and Incentives around Youth Development.
Increasing structural funding by $400,000 and adding one-time funds of $400,000 to enhance the Long Beach Public Library’s material budget, supporting an inclusive and diverse library collection, for a total of $800,000 (See section below for additional funding allocated as part of the City Council’s high priority projects to potentially fund at FY 22 year-end).
Adding structural funds of $1 million in the General Fund and reallocating $250,000 of Long Beach Recovery Act (LB Recovery Act) funds for a total of $1.25 million to increase Library hours across the Long Beach Public Library system (Change from Proposed Budget).
Enhancing Animal Care Services by upgrading a Public Health Associate to an Assistant Administrative Analyst, converting two Clerk I positions to three Clerk Typist I positions, and adding four General Assistant positions to enhance volunteer management, support field and licensing operations, and help implement the Compassion Saves Program.
Adding structural funds of $440,234 in the General Fund to add three positions as previously directed by City Council to support the Citizens Police Complaint Commission (Change from Proposed Budget).
Adding one-time funds of $100,000 in the General Fund to provide additional support for Ethics Commission (Change from Proposed Budget).
Reduction of adult-use and medical cannabis cultivation and retail taxes for equity businesses without affecting current services, and direction to develop a potential future rebate program (Change from Proposed Budget).

Business Attraction, Support and Economic Development

Supporting Long Beach businesses and promoting economic development is a key part of the City’s strategy in growing its revenue base and continuing towards the vision of being a city of opportunity. The Adopted Budget has new investments to support the business community, including:

Adding an Analyst position to serve as a business liaison and support business outreach efforts.
Adding three Permit Technician positions to ensure full staffing at the Permit Center.
Adding two Planner positions to staff the public counter and zoning telephone line to support plan reviews and customer service.

Arts, Culture and Tourism

The City has a strong history of supporting the promotion of arts, culture and tourism, and the Adopted Budget maintains its strategic investments in this area, largely supported by the Special Advertising and Promotions Fund (SAP). Additionally, the Adopted Budget proposes items in non-SAP funds including:

Allocating $2,142,891 in Measure B – Transient Occupancy Tax funding to support the City’s arts organizations and Long Beach Convention and Entertainment Center.
Creating a new Pier H Bureau to oversee the operations of the Queen Mary and the development of the surrounding area.
Adding an Events Coordinator to assist with the reopening of the Queen Mary.
Adding an Analyst position for improved oversight of the operating contract for the Long Beach Convention Center.

Infrastructure, Maintenance and Critical Needs Investments

Investing and prioritizing infrastructure and maintenance needs remain a critical part of the City’s efforts to maximize current resources for ongoing future benefits, including:

The City’s FY 23 Capital Improvement Program is $176.6 million, excluding Harbor.
A new five-year infrastructure plan totaling $522 million, including $150 million from a new Measure A City Infrastructure Bond Program, as noted above.
Conversion of 3.5 armed Park Ranger positions to 12.3 budgeted unarmed positions as part of a new Park Safety Ambassador, Clean Restroom, and Safe Playground Initiative to increase safety, close restrooms at night citywide in 39 parks, and have direct connection to Police Officers when additional assistance is needed. The initiative will also provide $600,000 of new park bathroom infrastructure upgrades with automatic timed locking doors, funded by Measure A.

Climate Change and Environmental Sustainability

Stewarding the City’s environmental resources, combating the consequences of climate change, and supporting various local sustainability practices are all major priorities for the City. Several key investments in the Adopted Budget reflect this commitment, including:

Creating a new Office of Climate Action within the Office of the City Manager, adding four new positions for a total of 9.3 positions when combined with the current Office of Sustainability.
Adding a Planner position to help implement the City’s Climate Action and Adaptation Plan.
Allocating over $7 million in AB 32 Cap-and-Trade Program allocations to support projects that can demonstrate a GHG emissions reduction and with 82.6 percent invested in disadvantaged and/or low-income communities.

Recruitment, Retention and Strengthening Internal Administrative Services

Organizations around the country are confronting the Great Resignation, a phenomenon that describes record numbers of people leaving their jobs post the COVID-19 pandemic. The Adopted Budget includes investments to help Long Beach support strong recruitment and retention efforts, including:

Adding two Personnel Analyst positions and one Personnel Assistant position in the Civil Service Department to help improve efficiencies in the hiring process.
Adding one Personnel Analyst position in the Human Resources Department to focus on classification and compensation.
Adding structural funding of $104,317 for a Learning Management System for citywide staff development and training.
Adding one-time funds of $2 million in the General Fund (with an estimated impact of $5.8 million All Funds) for a retention incentive for non-sworn employees to be distributed in FY 23 (Change from Proposed Budget).
Adding structural funding of $900,000 in the General Fund to enforce the Healthcare Workers Minimum Wage Ordinance (Change from Proposed Budget).
Plans for a new Talent Acquisition Division in the Human Resources Department.

Unfunded Operational Needs and Major Liabilities Improvements

As part of FY 23 Base Budget updates, the City was able to address or make progress towards funding some of the City’s unfunded and underfunded short-term and long-term liabilities, including $300,000 to allow street tree trimming to stay on the existing six-year cycle; $617,467 to help address additional water required to maintain green, safe and healthy spaces in public places; $465,000 to achieve the level of weed abatement with alternative herbicides than was previously possible using glyphosate; and $499,258 for medical costs needed in the Animal Cares Services Bureau and the Compassion Saves Program.

Long Beach Recovery Act

Heading into FY 23, the LB Recovery Act now totals $271.3 million to support more than 80 programs through December 2024 in three main categories: Economic Recovery ($64.5 million), Healthy and Safe Community ($131.1 million) and Securing our City’s Future ($75.7 million). As of May 2022, $112 million has already been expended in support of these recovery efforts – utilizing $68.6 million for Healthy and Safe Community, $9.2 million for Economic Recovery, and $33.7 million towards Securing our City’s Future.

Adopted Mayoral Recommendations

The Adopted Budget includes the approval of the following Mayor recommendations:

Additional annual funding through Measure B at Tier II for the Cambodian American Cultural Center and Latino Cultural Center—providing these Cultural Centers with annual funding at the same level as the African American Cultural Center—as well as for the South Coast Chorale LGBT chorus. Place a moratorium on adding additional programs funded through Measure B for the next three years, at which time a review can be done to measure the effectiveness of Measure B investments.
Formalize and expand the City’s program to waive or offset parking citations for people experiencing homelessness in order to help reduce barriers to housing and services.
$50,000 towards the Long Beach Heritage Coalition for preservation initiatives.
$150,000 invested into the African American Cultural Center (AACC) for the purposes of establishing a museum and cultural exhibit highlighting the impact of Hip Hop in Long Beach and the United States; and an additional $250,000 for the restoration of the historic VIP Records sign, totaling in a $400,000 joint project between AACC and VIP Records.
$300,000 over two years to fund the Long Beach Economic Partnership for business attraction and citywide marketing activities.
$100,000 towards developing an LGBTQ+ cultural center and museum.
$300,000 towards pre-K tuition assistance, technology and administration by partnering with the Long Beach Early Childhood Education partnership.
$125,000 in structural funding for a full-time education officer position created to be responsible for supporting the Long Beach College Promise and other education initiatives undertaken by the City.

The City Council has also identified the following high priority projects to be considered for funding using any year-end surplus resources, if available:

One-time funds of $800,000 in the General Fund to provide further support for Library materials. This would add to the $800,000 currently in the FY 23 Budget, bringing the total to a $1.6 million increase for the Library materials and book budget.
One-time funds of $200,000 in the General Fund to further support the Language Access Program needs.
One-time funds of $100,000 in the General Fund to support the Fireworks Enforcement Team.
One-time funds of $150,000 in the General Fund for feasibility studies or pilot programs to support increased access to reproductive health in response to the overturning of Roe v. Wade.
One-time funds of $150,000 in the General Fund to supplement the Measure B Transient Occupancy Tax revenues that are then allocated to the Long Beach Convention & Entertainment Center, arts organizations and cultural centers.
One-time funds of $50,000 in the General Fund to support the Pacific Corridor activation.
One-time funds of $300,000 in the General Fund Group to provide additional support for the Justice Fund. This will bring total resources for the Justice Fund available in FY 23 to $1.1 million.
One-time Measure A funds of $400,000 to support the Bluff Park Historic Lamps project.
One-time Measure A funds of $1 million to further support alley repairs.
One-time Measure A funds of $200,000 for additional funding to improve the Hudson Park Playground.
One-time Measure A funds of $500,000 to provide additional support for an all-inclusive, all abilities playground.

The Adopted Budget also takes into consideration resident feedback garnered through various community engagement opportunities throughout the budget development and review process. At the start of 2022, Long Beach residents had the opportunity to provide their feedback earlier in the FY 23 Budget development process by sharing their feedback during one of three virtually held community meetings. After the proposed budget was introduced, three additional virtual community meetings were held to educate community members of the Proposed FY 23 Budget and garner community feedback. Community members were also able to provide input by completing a Digital Budget Comment Card, which was available in English, Spanish, Khmer and Tagalog and made available online and in person at Long Beach Public Library computer labs. The community feedback from these engagement efforts was then transmitted to the City Council in a Sept. 2, 2022 memo.

For more information about the budget or to access the Community Budget Book, the City Manager’s budget presentation, and Mayor Robert Garcia’s Budget Message, people may visit the Financial Management Department website.

About the City of Long Beach

Home to approximately 470,000 people, the multiple award-winning and innovative City of Long Beach offers all the world-class amenities of a large metropolitan city while maintaining a strong sense of individual and diverse neighborhoods nestled together along the California coast. As a full-service charter city, Long Beach is home to the Queen Mary, Aquarium of the Pacific, several museums and theaters, a highly-rated school district, Long Beach Airport, the Port of Long Beach, as well as many award-winning City departments such as Health, Parks, Recreation and Marine, Development Services, Public Works and more. The City also has a highly respected university and city college, 2 historic ranchos, 5 hospitals, 12 libraries, 5 golf courses, 169 parks, miles of beaches, marinas, bike paths and a Bike Share program.

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