Newport Beach will have about $8 million less to spend in the coming
fiscal year because of slumping tax revenue.
Although
the economy is slowly recovering from the recession, Newport Beach will
continue to cope with the effects of shrinking tax revenue for
some time, City Manager David Kiff said.
“The bleeding has stopped, but the patient is still recovering,” Kiff said.
Newport Beach experienced an 18% decline in sales tax revenue in the last fiscal year, according to a city report.
The
downward trend has continued into this fiscal year — with sales
tax revenue slumping an additional 8.4% compared with the previous
year. Hotel occupancy taxes are down 23%, according to the report.
–Brianna Bailey
Photo: L.A. Times file