West Hollywood’s latest budget update paints a picture of financial stability, with revenues exceeding projections and expenditures remaining below budget. The City Council reviewed the Fiscal Year 2023-24 (FY24) financials and the mid-year budget adjustments for FY25 in a recent meeting.
Assistant to the City Manager Christine Safriet, alongside Budget Officer Melissa Lindley, presented the report, noting that West Hollywood closed FY24 with a $13.5 million surplus. “Our actual revenues came in at $160.6 million, exceeding the mid-year budget by $7.1 million,” Lindley said. Expenditures, meanwhile, totaled $147.1 million—$6.4 million less than projected.
Sales tax revenue fell slightly short of projections at $35 million, attributed to consumer spending slowdowns and prior-year reporting errors. However, transient occupancy tax (TOT) from hotels brought in $34.1 million—$2.3 million more than expected—reflecting the continued strength of West Hollywood’s hospitality industry. Property taxes also surpassed expectations at $28.4 million, boosted by rising property values and new developments.
Meanwhile, the city’s spending rose in key areas. Public safety contracts—covering law enforcement and security—grew to $30.3 million, a 16% increase from the previous year, largely due to special events and the expansion of the Care Team Behavioral Health Response Program. Social service contracts reached $6.5 million, while capital projects spending was at $3.8 million, covering street and infrastructure improvements.
For the first half of FY25, the city’s revenues stood at $72.1 million, slightly below expenditures of $76 million. However, the budget remains balanced, with total revenue and spending projected to reach $162.5 million by year-end. The city is making several mid-year budget adjustments, including a $1.9 million increase in projected revenue due to higher interest earnings.
On the spending side, the council approved $180,000 in new expenditures: $138,000 for parking-related administrative hearings and $42,000 for recreation safety training and programming, expanding emergency response training and aquatics programs.
Additionally approved was the addition of three full-time positions to manage the city’s growing billboard program: a Senior Planner, a Project Development Administrator, and an Administrative Specialist IV.
A reclassification of a Traffic Management Program Specialist to an Assistant Engineer (Civil) position was also approved, reflecting shifting priorities in the Public Works Department.
Councilmember John Erickson emphasized the need to support small businesses, which have seen their revenues free fall due to the aftereffects of the wild fires earlier this year. “It’s a small gesture, but every dollar helps,” he said, suggesting that the council explore further relief options.
During public comment, resident Kevin Burton urged the city to invest in emergency communication systems, including modernized sirens that can broadcast information. Councilmember John Erickson acknowledged the concern but was hesitant about reintroducing sirens, citing potential confusion among residents. “I don’t know if I would think a nuke was falling and I would hide underneath a table or something like that if I heard a siren,” Erickson said. However, he agreed that boosting emergency communication should remain a priority.
With a balanced budget and an eye on the future, West Hollywood’s finances remain stable. Mayor Chelsea Byers recognized the limits of city resources and the weight of the council’s decisions. “I appreciate and recognize our responsibility as a council to make sure the items we’re putting forward are truly reflective of the community’s needs at this time…I’m deeply aware that we can only accomplish what we can accomplish on behalf of the community if staff’s able to accomplish it. So we’ll be recognizing that balance as a council.”
The next formal budget discussion is slated for May 2025, with additional public meetings planned for the Finance and Budget Subcommittee before the FY26 budget adoption in June.
I’m sure that City Management will convince the Council that all the management needs raises, especially after reading about the West Hollywood Survey. This entire management team needs to be replaced! The articles that are coming out of City Hall are shocking.
Just because it was a strong budget year does not equate money is spent wisely. Most of this outcome is from higher taxes, higher housing evaluations, and higher hotel rates. The city government is out of balance of what they need to collect to maintain a balance without effecting our pockets on a daily basis to make them look good for their political ambitions
The council must be warned that a surplus reflects a cycle and cycles turn. A surplus in any cycle is not an invitation to spend more money on prom committee crap. It’s all about the nuts and bolts of sound municipal governance. Will staff, starting with David Wilson, caution the council on profligate spending?