Huntington Beach has a new $520 million budget for the coming year, though it comes with several fee increases for city services and projections of a deficit in coming years.
The new budget, approved unanimously by the City Council at its Tuesday, June 4 meeting, represents a slight increase of 3.8% compared to the current one.
The general fund budget, which excludes items like water and other areas that are less malleable, eclipsed $300 million and has a surplus of under $2 million. It does not include major additions of new services or cuts.
To bolster the budget, the city is raising several fees and creating new ones.
Getting transported in an ambulance will cost $2,092, up from $1,655. Overall EMS fees are going up by over 20% and more for various services. The city expects to bring in $1.6 million more by raising the EMS fees.
Event organizers who need permits from Huntington Beach for their ticketed events will need to pay a per-ticket fee to the city. Event organizers will need to pay $2 per ticket if its face value is below $50, $4 if it’s between $51-$200, and $6 for tickets valued at $201 and up. Community and library services director Ashley Wysocki told the Council that the fee would include the annual air show.
Parking at the Huntington Beach Sports Complex for special events and tournaments will now cost $10, up from $2.
The city will raise its fee for paying with a credit card for transactions that go through the city treasurer’s department. The city will also start charging for police reports and related records.
The city’s community development department will soon offer expedited plan reviews at two times the regular rate to reduce turnaround time for approvals. Councilmember Casey McKeon said demand will be high for that service.
Councilmember Rhonda Bolton expressed some discomfort with raising fees. There are other areas where the city could look at increasing revenue, like cannabis and short-term rentals, that weren’t in the discussion, she said.
“I’m troubled by us increasing fees on the stuff residents use on a regular basis,” Bolton said.
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The general fund gets funding from a variety of sources but largely comes from property taxes and sales tax, combined representing over $160 million. The city projects to take in more from property taxes due to higher home valuations.
Future budgets aren’t looking rosy. The city is projecting a $7.4 million deficit for its next budget beginning in July 2025. Each subsequent year is projected to have a growing deficit with the amount reaching $15 million by 2027.
“I do have really big concerns about the ability for us to be able to deliver services at the level the city wants with this budget outlook,” said Councilmember Dan Kalmick.
Councilmember Tony Strickland said the budget didn’t have a deficit this year since the city made cuts last year.
“I’m glad that we had some of those serious conversations last year,” Strickland said.
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