Long Beach Passes Budget With 8.3% Tax Hike

The City of Long Beach passed a new budget on Wednesday night that raises taxes on residents by 8.35 percent and makes big cuts to planned raises for employees.

The budget, which was unanimously passed by the City Council, reduced the tax increase from 12.3 percent to 8.35 percent, which will cost the average Long Beach homeowner an additional $276 a year, according to Newsday. That's down from the $400 increase that would have happened under the original 12 percent tax hike proposal.

Newsday reported that the city cut more than $500,000 from its spending and eliminated nearly $100,000 in raises. That includes all raises for management employees. The city also cut $60,000 in police overtime pay.

“The council put in a lot of hours to get this number down,” Councilman John Bendo said, according to the Long Beach Herald. “It may not be what you like, but it’s what we have to do to move the city forward.”

The problems for the city started in April, when Bendo and fellow Councilwoman Anissa Moore voted against the city borrowing $2.1 million to fund separation payments to employees, some of which still worked for the city. It sparked a budget crisis for the city, which led to the cancellation of buses for nearly a month, and threats of layoffs if it couldn't be resolved.

Because of the outcry from residents and local politicians, New York State Comptroller Tom DiNapoli examined the city's finances, questioning how the city handled its money. The comptroller's office is currently performing a full audit of the city.

Photo: Patch