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Manhattan Beach mayor says city is strong but warns of budget pressures, state housing mandates
Summary
At the April 30 State of the City, Mayor Leser described Manhattan Beach as fiscally strong yet facing rising costs and state housing rules that he said make large multi-tenant projects 'non-discretionary'; he announced a proposed budget and highlighted a $30M stormwater project.
Mayor Leser opened the April 30 State of the City address by saying the "state of Manhattan Beach is strong, but like every city today, we are facing headwinds with economic and fiscal uncertainty and challenges from state mandates." He urged residents to participate in an upcoming council review of the proposed fiscal-year budget.
The mayor said the city’s proposed budget projects $199.7 million in revenue, $210.6 million in expenditures and $22.3 million in capital improvements. He cited the city’s AAA S&P bond rating as evidence of fiscal responsibility while cautioning that increased insurance, pension and operational expenses will complicate budget choices.
The mayor called out state housing law as a major challenge, saying large multi‑tenant projects that include a small percentage of affordable units will qualify for concessions on height and density and, if they meet statutory criteria, are "non-discretionary." He said that removes local entitlement discretion and raises questions about how Water, sewer and roadway systems would support such projects: "It's not clear," he said.
On environmental infrastructure, Leser described the recently dedicated 28th Street stormwater infiltration project, noting that roughly 60% of the city’s stormwater presently flows unfiltered into Santa Monica Bay and that the $30 million project—funded mostly by grants—will treat runoff that in 11 of the last 20 years produced bacteria levels exceeding state and county standards.
The mayor also previewed agenda items coming to council next week, including review of the proposed budget, safety proposals developed with the Parking and Public Improvements Commission, and proposed municipal code changes related to e‑bike usage. He closed by thanking city staff and council colleagues for their work.
The council is scheduled to begin formal review of the proposed budget at its next meeting; the mayor invited residents to participate in budget discussions posted on the city website.
