MALIBU—The city of Malibu will conduct a public hearing for the 2020-2021 fiscal year budget on Monday, June 8 during their routine City Council meeting.
The budget proposal totals $54.34 million in revenue and $63.14 million in expenses. It also holds a General Fund annual revenue of $30.20 million which matches the General Fund annual expenditure at the same amount.
The budget is expected to be balanced despite the economic impact of COVID-19, which is expected to affect the fiscal budgets for 2019-2020, 2020-2021, and 2021-2022. The city notes that there would be a significant decrease of over $2 million in anticipated revenue. Malibu benefits from the fact that the majority of their General Fund is composed of property tax, which accounts for approximately 42% of the revenue.
The global coronavirus pandemic will continue to disrupt city operations with a balanced budget and while maintaining the city’s General Fund reserves. With the expected decrease in revenue and the city’s continued recovery efforts after the Woolsey Fire and COVID-19 pandemic, Malibu’s proposed revenue will likely defund several city entities.
The city’s Management and Administration Department will see a budget increase by $3,500 whereas the City’s Public Safety budget will have a $58,000 increase.
The Environmental Sustainability Department will face a significant loss as it will be decreased by $1.13 million. The City’s Community Services will also see a net decrease of $198,000.
The Planning Department’s budget will decrease by $506,000 due to the transferring of salaries to the Woolsey Fire Rebuild Program and the vacancies of two positions.
Malibu’s Public Works budget will be decreased by $837,000.
Services such as the California Highway Patrol’s assistance during Public Safety Power Shutoffs, enhanced services for the homelessness issue, and the development of an Environmental Commission, as well as a handful of other entities, are expected to not receive any funding for the 2020-2021 fiscal year.
The budget will also not account for any Departmental Audits, which is a Council Policy that the city conducts twice each year.
Funds such as the one-time use Southern California Edison Settlement Fund, Special Revenue Funds and grant funds in place of the General Funds ongoing operating expenses will be utilized to keep the budget balanced, but it is noted by the city that this is not a sustainable option.
The city also points out that the budget could face further significant impacts as the result of a disaster such as a wildfire or an earthquake. A FEMA reimbursement of $7 million is due to be paid to the city as the city continues to recover from the 2018 Woolsey Fire, but it is unclear when the payment will be fulfilled. FEMA payments have taken up to 10 years in the past to reimburse the city for distaste-related expenses.
All things proposed on the budget are up for change if specific services are deemed more necessary than others.
The final budget will be presented to the City Council for official adoption on June 22.
The City Council will meet virtually on Zoom conduct their regular meeting on Monday, June 8 at 6:30 p.m.
More detailed information on the City of Malibu’s proposed budget can be found here: https://www.malibucity.org/AgendaCenter/ViewFile/Item/4356?fileID=13407