Costa Mesa officials report higher-than-expected revenues
Costa Mesa city officials reported greater-than-anticipated revenue streams coming into city coffers during a Tuesday study session.
As of Dec. 31, City Hall had collected $36.6 million, a 4.8% increase from the $35 million collected by that time the year before.
Revenue increases for the 2014-15 fiscal year are secured property and sales taxes, up by 4.7% and 4.4%, respectively, and building permits and related fees, up by 17%, said interim Finance Director Steve Dunivent.
Parking citations are down by 20%; the city’s golf course revenue is down 1%, Dunivent added.
Costa Mesa police said only one parking enforcement officer was on duty for a time, which could account for the decline in citation revenue. Staffing levels in that area have since increased.
Councilwoman Katrina Foley suggested more promotion of the golf course, which offers resident and senior discounts.
She was also critical that a Macy’s fundraising campaign last year received little exposure. Customers at the store last spring donated $1,165 toward Shiffer Park; it was used to plant tulip trees.
“I shopped at Macy’s during that time period,” Foley said. “I didn’t know about it.”
City officials also reported that they are attempting to collect additional revenue from business-license fees. The fee maxes at $200 a year for businesses with more than $500,000 in annual gross receipts.
Dunivent said city staff members are comparing state records with their own to uncover businesses that are paying the state but not the city.
The fee has gone unchanged since the 1980s and has been criticized in recent years for levying too small a charge on businesses that may generate millions in revenue.
Councilwoman Sandy Genis expressed concern about the need to boost city reserves instead of spending millions in extra revenue.
“That’s a critical issue for us,” she said.
City staff noted that a future council session will address reserve funding. The meeting is scheduled for 5 p.m. Feb. 24 at City Hall, 77 Fair Drive.
