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Weigh in on Manhattan Beach Budget Priorities

Feb 06, 2021 09:24PM ● By Dig Mb Staff

Manhattan Beach General Fund via City of Manhattan Beach

As the city of Manhattan Beach is preparing recommendations to the City Council for its annual budget, it is seeking input from residents.

City leaders want to hear about budget priorities and what you think are the most important areas for the city to invest in for the upcoming year.

To contribute your responses, take this quick survey.

The survey allows the community and stakeholders to learn how the city expends funds, examine where revenue stems from, prioritize infrastructure projects, provide input on how to address COVID-19 impacts and budget how to “spend a dollar” worth of the city’s general fund.

Members of the community have until Friday, February 12, at 3:00 PM to participate in the online survey.

Manhattan Beach General Fund Notes

The city’s General Fund is the primary fund of the city and used to account for all general revenues (taxes, fees and charges for services) and expenditures (costs of core administrative and operational tasks provided by the city).

In FY 2020-2021, General Fund Revenues were projected to total $73,122,730. The city’s most significant General Fund Revenue sources are property taxes, sales taxes, service charges, and hotel transient occupancy taxes (TOT). Due to the COVID-19 pandemic and economic impacts, several of these key General Fund revenues are at risk:
  • Sales and use taxes are impacted by lower sales at local brick-and-mortar stores and restaurants. Online sales have increased, but they result in the collected sales tax going into a countywide pool, which is then allocated based on the city’s share of point-of-sale taxes countywide. Consequently, when a purchase is made at Macy’s online, the city receives only a fraction of the revenue that it would receive if the purchase was made locally at Macy’s in the Manhattan Village Mall.
  • Transient Occupancy Taxes (TOT), which are derived from local hotel and motel stays, are significantly lower due to the sudden and severe disruptions in travel and tourism.
  • Business License Taxes, which are based on a business’s prior year gross receipts, are down overall due to lower economic activity.
  • Service charges from Parks and Recreation classes and reservations are also trending significantly lower than prior years due to canceled and modified programming.
These revenue trends are being monitored and will be discussed further during the Mid-Year Budget Update at the February 16 City Council meeting.

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