Proposed $103 million Long Beach budget calls for 12.39% property tax hike, highest since 2013

The City of Long Beach is proposing a nearly $103 million budget that calls for a residential property tax hike of 12.39%, the highest the city has seen since 2013. The budget takes into account a $75 million settlement with oceanfront apartment developer Sinclair Haberman.

If approved by the City Council, the 2023-2024 proposed budget will increase to $102,992,626 from $95,590,169, and raise a homeowner's tax bill by an estimated $574, officials said. The budget is part of a multiyear effort to right the city's finances after years of mismanagement, officials said. 

Several non-negotiable factors loomed over budget discussions, said city Comptroller Inna Reznik, including the settlement to Haberman, which was negotiated down from a court-ordered $150 million and ends more than 30 years of dispute over the property on Shore Road, between Monroe and Lincoln boulevards. The first payment of nearly $5.5 million is due this year to pay back bonds. 

Without the Haberman judgment, officials said the increase would have been 2.06%, or approximately $108 per household.

The proposed tax levy is $59.9 million, which is $5.5 million above the legal limit, and a 12.71% increase. The City Council would have to adopt a local law authorizing an override of the tax levy limit but has not done so. 

The budget must be approved by May 31.

In addition to the settlement, the city also had to consider rising health insurance premiums, property insurance costs and contractual raises for union employees, said Reznik, who has been the city’s comptroller for four years. Increasing taxes for residents was not a decision officials made lightly, she said. 

“While it was a challenging budget, I feel very proud of the budget that actually we were able to put together. I think that it shows that through cooperation and hard work, you can actually come out with a responsible budget," said acting city manager and police chief Ron Walsh. 

The city was designated the most fiscally stressed municipality in the state in 2019 by the state comptroller. It was removed from the fiscal stress list this year, Reznik said. 

The state comptroller’s office reviewed the city’s proposed budget and in a Friday letter told officials the budget’s significant revenue and expenditure projects were reasonable. 

To increase revenue, the city is exploring plans to begin charging for parking in the central business district through a public-private partnership with Flowbird, a parking payment app. Walsh said the city was finalizing talks with the company and the partnership would pose no cost to residents. The council will have to vote on the plan. 

To pare down costs, the city is making changes that won’t be disruptive to residents, Walsh said, including having lifeguards start an hour later during weekdays, a move that will save the city about $100,000. Public safety will still monitor beaches before lifeguards begin their shifts, Walsh said. Officials are also proposing changes to sanitation schedules on some holidays to reduce costs. 

“Little things like that where the public won’t really notice a difference but can save real dollars,” Walsh said. 

By Brinley Hineman

brinley.hineman@newsday.com

Brinley Hineman covers the Town of Hempstead and the City of Long Beach for Newsday. She previously was a reporter in Nashville, Tennessee, and is a West Virginia native.