Long Beach Proposes Budget With Nearly 8 Percent Tax Increase

In the budget recently put forward by the Cit Council, Long Beach residents would be facing a nearly 8 percent tax increase, as well as increases to their water and sewer fees.

The city said that the reason for the tax increase is that the increases in fixed expenditures have grown faster than the city's revenues. To help keep the city afloat, the proposed 2019-20 spending plan would have a tax increase of 7.9 percent. The city says that would be an additional $304.63 for the average home, which the city values at about $455,000.

The proposed budget is 3.25 percent higher than the current year's spending plan, bringing it to a total of $97,616,975 -- more than $3 million higher than the 2018-19 budget.

Under the proposed budget, residents would also have a 2 percent increase in their water rates, and a 5 percent increase in their sewer billing. The city said that the increase is due to revenue declining from "Sandy driven levels."

The city said that increases in some items, mixed with a decrease in revenue, is leading to the increases. According to the budget document, the city is projecting $1.6 million less in revenue for 2019-20 than for this year, stemming from a decrease in federal and state grants, as well as fees and permits.

That's coupled with a $586,500 increase in healthcare costs and a $1.042 million increase in salaries due to contractual raises. The city is also facing a more than $613,000 increase in debt services, mainly due to capital improvement projects that were bonded.