Seal Beach says it’s in the black

Seal Beach’s finance director projected a surplus of $1,482,500 at the Monday, Feb. 27 mid-year budget review.

That same night, staff reported that the Seal Beach Tennis Center is making a profit for the first time in years. The city owns the center, but pays a private vendor to operate it.

According to the staff report by Shally Lin, interim director of finance, collected property taxes were higher than expected, increasing the budget by $300,000.

Vehicle license fees were also higher for the year, increasing the budget by another $100,000.

Cable Franchise Fees were down, decreasing the budget by $100,000.

Another expense was about $130,000 taken from the General Fund Reserves for the Oct. 12, 2011 Salon Meritage murders. The report did not specify how the money was spent. Lin warned the council that employer contributions to the Public Employees Retirement System could increase because investment rates were currently low.

Lin recommended that the council create a business attraction and retention program.

She said Seal Beach needs to make retailers more comfortable with the city’s services.

“Don’t run the city as a non-profit, run the city as a for-profit,” Lin said.

Seal Beach resident and activist Seth Eaker said her words were “a breath of fresh air.”

Councilwoman Ellery Deaton said she would like to set aside 10 percent of all income so the city would have the money when it is needed.

The council voted unanimously to receive and file the report.

Later that night, the council learned that the Seal Beach Tennis Center is making money.

“At this time the facility has reported revenues of $81,000 and expenditures of $71,635.72 for a profit of $9,364.28,” said the staff report by Assistant City Manager Sean Crumby.

Last April, then-Director of Administrative Services Robbeyn Bird told the council that the tennis center had been running a deficit of about $70,000 a year from 2006 to 2010.

Last August, Community Services Supervisor Tim Kelsey said staff projected a $70,000 deficit for the center.