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Purpose of Budget Review

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the City of Long Beach’s (City) proposed budget for the 202-25 fiscal year are reasonable. 

Background

The City, located in Nassau County, has been authorized to issue debt not to exceed $12 million to liquidate the accumulated deficit in the City’s general fund and certain other funds as of June 30, 2012. Local Finance Law requires all municipalities that have been authorized to issue obligations to fund operating deficits to submit their proposed budgets for the next fiscal year to the State Comptroller for review while the deficit obligations are outstanding. 

Key Findings

• The proposed budget includes revenue estimates for metered water sales of $5.575 million and sewer rent estimates of $5 million. These estimates include amounts that are expected to be realized from a 25 percent increase in metered water rates and a decrease in sewer rents from 130 to 90 percent of water usage, which the City Council has not yet authorized. Unless the rate changes are authorized and made in a timely manner, water and sewer fund budgets should be modified accordingly.
• The City’s proposed budget includes a tax levy of $60.1 million, which complies with the legal limit. In adopting the 2024-25 budget, the Council should be mindful of the legal requirement to maintain the tax levy increase within the tax levy limit as permitted by law, unless it properly overrides the tax levy limit prior to adopting the budget.

Key Recommendation

• Review our recommendations before the budget is adopted.