An increase of $2 million to budget has council members discussing using some of $98 million in reserves.
With reserves expected to reach $98 million next fiscal year, Newport Beach officials indicated this week that they may be ready to spend some of the money.
The City Council gave preliminary approval to the 2012-13 plan Tuesday night, after Finance Director Tracy McCraner presented a balanced budget that invests slightly more in information technology and capital improvements, while generally keeping expenditures at the same level as this year.
But the city has a long list of deferred harbor and beach projects — like more than $30 million in identified dredging and a $68-million project to replace Balboa Island’s aging sea walls. While leaders have increased fees for mooring holders and others around the harbor, the “tidelands” revenue does not come close to fulfilling its more than $109-million needs.