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West Hollywood approves $95 million budget
06/25/2012
By WeHo News staff, West Hollywood, CA

While reservations about the process by which the West Hollywood two-year budget came to be proposed beset the hearing, the WeHo City Council approved an “all funds,” or operating budget of $95,528,052 for 22012-13 and a $97,109,652 budget for 2013-14 last week.

The portion of that budget applied to the General Fund, or discretionary, portion of the budget amounted to $67,094,173 in the first year and $68,701,433 in the second.

City manager Paul Arevalo stressed that only approval of year one (2012-13) stood at issue on Monday last and that the second year of the budget plan would face another hearing after a budget review.

A primary concern raised by council members was both the introduction and hearing of the budget at one time.

In years past a budget study session with council two months preceding the hearing at which the vote is taken took place, not so this year.

Council member John D’Amico raised the issue first, noting that it appeared commissions, boards and the public lacked input into the way the city spends its money.

Mayor Pro Tem Abbe Land noted that the budget study session usually takes place in April.


Rebuilding the West Hollywood Sheriff Station is getting a look. Photo by WeHo News.

Mayor Jeffrey Prang suggested that the study session was being dovetailed with the approval hearing, as the budget sub-committee’s questions matched up closely to the public’s.

A large part of the discussion came over a $212,000 feasibility study to expand the Sheriff’s Branch Station and including a new City Hall on the space.

The matter was asked about during public comments and in the budget sub-committee (comprised of Mayor Pro Tem Land and Mayor Prang), as the Sheriff’s Station is a county facility resting on county land.

Mr. Arevalo said that the city will one day soon run out of space in the building it now occupies and the Sheriff has already run out of space.

The Station was built in 1980 to accommodate 110 personnel – it now holds 183 plus a volunteer force that numbers 75.

Being that the county is strapped for funding to build another station, and inter-governmental partnerships such as the new Fire Station 7 have already set a precedent for such construction, the $212,000 would help in the planning of construction of a combined City Hall/Sheriff’s Branch Station to better serve the community.

Council member John Duran noted that populating that institutional space with thriving commercial enterprises to match the Boystown presence across the boulevard could be realized under such a plan.


Between more deputies and added private security details, the city approved a $1 million increase for pblic safety. Photo by WeHo News.

The focus on public safety enhancements in the budget drew kudos from Mayor Prang, who congratulated the staff on its development of security “ambassadors,” or unarmed security guards to patrol the city’s burgeoning entertainment districts, as well as reinstituting $500,000 for policing that the city expected the federal government to make up in the last budget cycle, but did not.

“It’s been years since we’ve made this kind of substantial investment in public safety,” he said. “It’s a million dollars, for additional law enforcement personnel and for these security services.”

Besides nibbling at the edges of certain programs – adjustments that can be made in future sessions – the proposed budget stood.

The budget calls for increases in revenue from the transient occupancy tax (TOT or hotel tax) which is the City’s top single source of revenue. 

Hotel occupancy appears to be recovering from the recession and the proposed budget projects a 6.3% increase in fiscal year 2012-13 to $13.5 million.

Sales & Use Tax revenue is expected to increase by 2% per year during the upcoming budget cycle as the economy continues to recovery. 


Both the hotel and retail industries have rebounded from the recession to an extent that the city expects more money to flow into its coffers. Photo by WeHo News.

The Property Tax is estimated to increase by 2% in each of the proposed budget years, about $200,000 a year, to $10.7 million in fiscal year 2014. 

In addition to the 2% annual increase, the City expects to receive repayment of a $1.4 million loan in fiscal year 2013 that was taken by the State in fiscal year 2010. 

Parking fines for violation of state and local parking laws generate approximately $8 million a year.  This budget projects an increase of 2.8% per year in parking fine revenue. 

Parking meters usually generate approximately $2 million in revenue for the City.

This budget proposes installing new credit card meters with an increased hourly rate from $1.00 an hour to $1.50 per hour. The $.50 increase will cover the cost of operating the new meters. 

Staff proposed and the council approved an increase in the hours of operation for the parking meters Citywide, helping offset the enhanced public safety expenditures.

See the approved budget here.

 

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